 |
Investment In Resort Properties In Thailand
Author: Gregory Smyth  | Posted: 12-07-2008 | Comments: 0 | Views: 18 | Rating: (78)  (?) 
One of the fastest growing areas in the Thai property market is branded condominium developments. Recent examples of similar projects in Singapore where returns were up to 50% greater than for non-branded developments have inspired the Thai market. Growing numbers of tourism makes these developments very promising ventures, and the Thai government's newly de-regulated property sector is also having a favorable effect on developments like these. In the related industry of luxury housing, there have also been large projects announced recently in Thailand by Magnolia Quality Development Co, to create large luxury housing estates and condominiums.
Thailand recently emerged onto the global property market after over 15 years of military rule and very tight controls on property ownership by foreigners. The new Thai government wants to motivate investors to put their money into the country, and so has reduced the transfer fee on properties from 2% to 0.01% until the end of March 2009. On multimillion dollar construction projects like branded hotels, this makes quite an impact on the net profit. In addition, the specific business tax has been reduced from 3% to 0,01% for the same period of time.
However, it is not only due to tax cuts that branded hotels and resort properties are becoming hot items in Thailand's property sector. Across all of Asia, five star hotel brands are working in conjunction with developers and owners to boost the availability of luxury accommodation. It is attributed to the confidence that branded resorts inspire in investors. Projects are generally meticulously and expertly planned, by people with experience in similar successful projects overseas. Hotels and resorts with a strong track record are finding that property investment in Thailand, and in Asia generally, can yield especially high returns. In Singapore recently, a brand name condo development sold for $4,000 per square meter, as opposed to the $2,500 that such a development without a brand name usually fetches.
In a property environment where many more projects are announced than completed, brand name resorts make investors feel more secure. It offers them some measure of assurance that a project will not only be built, it will be finished to a certain standard and will come with some ready-made customers, as global visitors look for resorts and hotels where they know what to expect.
One of the first developments in Thailand to take advantage of such premium prices for luxury condos is Magnolia Quality Development Co, which will develop both single houses and condominiums under the brands of Baan Magnolia, WHIZ.dom, and Eco Village. The six projects to be launched will be worth around 10 billion baht. One of these is the Baan Magnolia 4 true Eco Park, which will include residential units, a resort and a hotel. They are hoping to cash in on the current boom in branded resorts. A spokesman for the company said they would be focusing on quality products to ensure strong sales, rather than lowering prices to attract more customers.
These developments by Magnolia should also have an increased profit margin, as costs have been cut by shortening the cycle from design to completion by a huge 30-50%. They are confident of having investors, and now only have to choose which of the potentials will come on board.
Tourism in Thailand is set to increase by 20% per year, owing to the prevalence of extremely cheap stop over flights, as compared to the relatively expensive direct flights. Thailand's unique geographical position gives it an advantage for the tourism sector. Its extensive natural attractions, along with the relative inexpense of local facilities (compared to in Europe and America) ensure that resorts, five star hotels and luxury accommodation will always find customers.
Overall, the resort property market in Thailand looks set to grow, especially where branded developments are concerned.
Rate this Article:
Current: 0 / 5 stars - 0 vote(s).
Article Source: http://www.articlesbase.com/real-estate-articles/investment-in-resort-properties-in-thailand-481781.html
|
Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free! |
|
Got a Question? Ask.
Ask the community a question about this article:
Q&A Powered by: 
Latest Real Estate Articles
Lake Tahoe Luxury Homes - Lake Tahoe Luxury Real Estate
By: Adam Morien | 12/10/2008
Lake Tahoe is home to some of the most breathtaking luxury homes in the world. From the lakefront beach estates to scenic mountain top lake views, Lake Tahoe is one of the most sought after luxury home markets in the United States today.
Let's Talk Due Diligence....it is Vital for Real Estate Success....right?
By: Peter Vekselman | 12/10/2008
Let's Talk Due Diligence....It is vital for Real Estate Success....Right?
Are Real Estate Investments Good Ways to Earn Money?
By: Jamie B. McIntyre | 11/10/2008
The recent credit crisis has made real estate into something almost taboo to investors, because homes across the country are losing their value by the day. Investors are disconcerted over how the stock market has been in an upheaval thanks to the sub-prime mess that has been going on for...
Investment in Dubai
By: Editor-123 | 11/10/2008
Now, even the foreigners can easily invest and can take active participation in the capital investment in this ever-growing market of the Dubai properties. Amidst the glasslike towers along the vast sea, Dubai promises increasing returns for its investors.
Profit From the Foreclosure Boom Through Powerful Foreclosure Training
By: DCFawcett | 11/10/2008
When real estate investors evaluate their options for what types of properties to invest in, some of the first things that come to mind are preforeclosure, real estate short sales, and other types of foreclosure properties. This tendency is a natural one. After all, sellers facing foreclosures are naturally going to be more motivated and that is what most investors are looking for.
Historical City of Apulia
By: Priya Singh | 11/10/2008
Apulia is "mare e terra", sea and land, a world of rich contrasts. The varied coastline and the hinterland with its cultivated farmland; the tranquil small towns and its cultural treasures.
Hawaii Homes and Volcanoes for Sale
By: Hedin Johan | 11/10/2008
Volcanoes can be found it most parts of the world and Hawaii is no exception-the beauty and lush landscape that comes with volcanoes is literally out of this world. When I suggested a few friends of mine to go visit the islands, I didn’t realize they’d come back with more than they’d bargained for.
Find Hawaii Homes for Closure and Profit
By: Hedin Johan | 11/10/2008
When we talk about the homes that are up for foreclosure, it really does seem like these homes and their families are closing down for good.
More from Gregory Smyth
Planning Business Trips To India - Insider Secrets
By: Gregory Smyth | 06/10/2008 | Travel
Far more so than on regular trips away, going on a business trip means you need to arm yourself with information. India is nearly the polar opposite of many Western countries, with amazing cultural and business differences. Which hotels in India should you stay at, and what should you know before doing business in this, the world's largest corner?
Protect Your Company With Escrow Service Providers In Thailand
By: Gregory Smyth | 30/09/2008 | National, State, Local
With the advent of the Internet as a means of doing business, more and more people become familiar with the escrow method of making and receiving payments. In Thailand, a new escrow business law regarding real estate has recently been enacted - we get a law firm in Thailand's perspective on how the escrow business laws will affect corporate life.
Ten Improvements To Auto Interiors
By: Gregory Smyth | 29/09/2008 | Cars
Your mother might have told you that true beauty is no the inside ... and so might have your father, when he was talking about how the interior of a car creates its style just as much as the outside! After all, we spend infinitely more time looking at the inside of a car than its exterior - what advancements have been made with car accessories in Hong Kong and elsewhere, in recent times?
See, Do And Stay In Cairns, Australia
By: Gregory Smyth | 29/09/2008 | Travel
If you love the idea of a beach getaway, but want to go somewhere that you'll understand what the locals are saying amongst themselves, Australia is the destination of choice - and Cairns is one of the favorites. With a beautiful climate all year round, this tropical city has a galactic array of natural wonders, and just as many luxury hotels in Cairns to relax in, after some very full days!
Hong Kong Figure Skaters Debut At National Winter Games
By: Gregory Smyth | 24/09/2008 | Sports and Fitness
Figure skating in Hong Kong and ice skating in Hong Kong have been gaining popularity at enormous rates. Recently three of the sport's up and coming young stars, from Hong Kong and Macao, made their debut at the National Winter Games, held in Qiqihar.
What To Look For In A Small Business Credit Card
By: Gregory Smyth | 24/09/2008 | Credit
Credit cards are an integral part of the cash flow management of small businesses. However, the number of products and features available makes it difficult to assess which is the best choice for your business. Business consultancy services can help you assess whether a particular card will suit your business - here we give you a rundown of the main points.
Most Improved Luxury Cars For 2008
By: Gregory Smyth | 22/09/2008 | Cars
Buying a sports car in Hong Kong, even a decent quality one, can sometimes be a bit of a disappointment. With difficult economic conditions prevailing the world over, there is an increased need to ask what people want, listen to their answers and then deliver on the results. This list of the most improved cars for 2008 shows which manufacturers have best heeded the cries of the consumer.
Most Expensive Cars in Hong Kong
By: Gregory Smyth | 19/09/2008 | Cars
One of the most expensive cars to hit the US market in recent times was the Mercedes Maybach series - sticker prices approached $300,000, and Hong Kong luxury sports car dealers found customers that were just as surprised - and some that were especially excited. We look at Hong Kong's most expensive cars that have both thrilled and shocked motorists.
|
|
Finance 
