Thailand Business News – The Alternative Ownership Conference for Resorts and Hotels – Asia Pacific (AOCAP) organised by Absolute World Group will run October 10-12 at Millennium Resort Patong in Phuket, Thailand.
The conference aims to highlight the growth of alternative ownership in the Asia Pacific region as a new revenue stream for hotel owners and property developers. A recent study on shared ownership by hospitality consultant C9 Hotelworks reported a vacation ownership sales volume of THB722 million (US$23.48 million) and fractional property revenue of THB112 million (US$3.64 million) in the first half of 2009 in Phuket. The report also found that 2007-2009 saw 22,410 Vacation Ownership units and 70 fractional real estate units sold on Phuket. The market in Thailand has grown since with a number of new Vacation Ownership and fractional offerings in Samui, Hua Hin, Pattaya and Phuket, while growth in the region continues specifically in Singapore, Malaysia and Bali. “Following the success of the inaugural AOCAP conference in 2009, we are excited to announce AOCAP 2010 will take place 10-12 October in Phuket. Our goal is to introduce more delegates to the benefits of Alternative Ownership,” said Bryan Lunt, Chairman and CEO Absolute World Group, founding sponsor of AOCAP. This year’s conference will feature speakers from companies including Perspective International, The Registry Collection, RCI, Interval International, and the Australian Timeshare and Holiday Ownership Council. Workshops are planned in both English and Thai, and practical forums will be implemented using case studies. Networking opportunities have also been scheduled in the evenings giving delegates the chance to share experiences with others in the business. Thailand Business News
The SET index bottomed at 432 in December 2008 after tumbling from a high of 833 earlier that year. The index then levelled off in Q1/09, before working its way back to 560 in May. Triggered by positive pre-sale signs from developers, a reduction in construction costs and the government’s stimulus package, property stocks were among the first to bounce back. The SET’s revival reached a mark just 32% below its peak, in line with other world stock markets including the Dow Jones (-33%), Singapore Straits Times (-27%), the Hang Seng (-25%) and the FTSE (-27%).
The Bank of Thailand Monetary Policy Committee stopped cutting its key rate in May 2009 after seeing signals of a recovering economy. Many expect banks to adjust their rates down once rising confidence supports housing purchases, and promotion campaign launches to grasp home buyers.
As a result of declining consumer confidence during four consecutive quarters there has been a dramatic drop in sales of big ticket items such as vehicles (-33%). Bangkok housing registrations for single houses and townhouse units have also been hit hard, while investments and new mass transit lines have boosted market share for condominiums in the residential property sector, although the market demand as a whole has been lower. Transactions will most likely remain slow until confidence returns to both buyers and bankers, who finance property developers and their customers.
Recognising that sales would slow, forward-thinking companies took the opportunity to focus on their fundamentals and improve their balance sheets. This was the strategy of Hubert Viriot, CEO of the luxury developer Raimon Land, who was appointed in the midst of the crisis.
First, and unlike Europe or the US, where government subsidies and financial aid are the only things artificially holding up the sector, the kingdom’s housing market benefits from genuine demand, with limited influence from speculators and foreign-based buyers.
The mid to high-end segment boomed this year in Thailand as demand was wide and remained strong. The high-end will recover in the third or fourth quarter. But supply in this segment is very limited due to scarcity of land for new developments. Around 80% of the new launch in this segment was taken up. New supply in the high-end segment, now quoted at 150,000 to 200,000 baht a square metre, will be provided by developers with a strong financial status, experienced teams and products that match demand.
Currently, the MahaNakhon project is the only new high-end project in the pipeline. The Sukhothai Residence project on Sathorn Road, which is 70% sold, has frozen sales until demand can sustain the desired prices.