The Airports of Thailand Public Company Limited (AOT) has announced the air transport statistics for June 2010.

Total international passenger disembarkations at Bangkok’s Suvarnabhumi airport were 1,013,782 in June 2010 compared to 994,205 in June 2009, an increase of 2% but this represents a 19% decline on June 2008 disembarkations. Domestic passenger disembarkations at Suvarnabhumi and Don Muang airports were 394,278 in June 2010 compared to 431,514 in June 2009, a 9% decline on both June 2009 and 2008 disembarkations.

International disembarkations at Phuket’s airport were 94,681 in June 2010 compared to 64,451 in June 2009, a 47% increase. This represents a 23% increase on June 2008 figures. Domestic passenger disembarkations were 102,505 compared to 108,270 in June 2009, a decline of 5% on June 2009 and a 9% decline on June 2008 figures.

CB Richard Ellis manages more than 2.5 billion sq. ft. (232.3 million sq.m.) of commercial property globally. This portfolio is more than 850 million sq. ft. (79 million sq.m.) larger than the #2 firm, which manages 1.65 billion sq. ft. (153.3 million sq.m.).

In Thailand, CBRE manages over 6.4 million sq.m. of grade A offices, world class villas, luxury condominiums and apartments, retail in Bangkok, Phuket and Samui such as Energy Complex which is an energy saving development and applies LEED, an internationally recognized green building certification system, for new construction.  Some of other properties under CBRE’s management are Athenee Tower, CyberWorld Tower, Exchange Tower, The Met, The Infinity, The Rajdamri, Royal Residence Park, Vasu The Residence, Samui Park Avenue, Royal Phuket Marina, Laeng Singh Villas, The Heights, Layan Estate.   

Energy Complex

CBRE Executive Managing Director, Asia Pacific Asset Services, Mr. Sam Cuccurullo said CBRE was the leading commercial property manager in the Asia Pacific region, with 800 million sq. ft. (74.3 million sq.m.) under management.

“We have now created a global Asset Services Executive Committee and we are starting to create initiatives around strategic client accounts,” Mr. Cuccurullo said.

“Going forward one of our primary targets in Asia Pacific is regional clients and premier buildings in major CBD locations.”

During what some fear may only be a lull in sporadic civil unrest, a Bangkok commercial property services adviser gives tips that could ward off potential calamity.

Strong fears of more violence breaking out on Bangkok streets have led to many foreign companies identifying buildings farther away from the central business district to use in future emergencies, according to Nithipat Tongpun,executive director of CB Richard Ellis.

Although those working within the country realise that the situation is probably manageable, top executives at the overseas head offices of multinational and other foreign companies in Thailand are still disturbed by the images they saw of the violence in Bangkok in April and May.

“Many companies have asked us to prepare information on what is available in the northern part of the city and to the east,” said Mr Nithipat. He added that Thai companies generally are not on the hunt for backup space, partly because many local businesses own their own buildings, while smaller operations might work out of homes.

“For those who have called and those we’ve held discussions with, our advice is that they should quickly work this out now because if something happens they could then proceed swiftly.”

He said companies were mainly looking at office buildings along Chaeng Watthana Road in the northern zone and the Bang Na area in the east. They are not focusing on areas such as Ratchadaphisek Road that are seen to be a bit too close to the central area that was hit by violence in May.

“For example, if you had moved to Sukhumvit when the unrest broke out in Ratchaprasong, you might have had to move a second time,” said Mr Nithipat.

“I have seen equal demand for Bang Na and Chaeng Watthana,” said Mr Nithipat,and in fact some companies are looking to rent backup offices at both Chaeng Watthana and Bang Na as this would make it easy for staff who live in either of the two zones to get to work.

Buildings where companies are looking to rent backup offices do not necessarily have to be Grade A, but they do need to have full facilities and be convenient to reach close to train lines or the expressway.

Bang Na is near Suvarnabhumi Airport,but that doesn’t give it an edge over Chaeng Watthana because the focus is more on access for the ordinary worker.

Noting that computer file servers are the very heart of a business, Mr Nithipat said it was important for companies to make sure that the servers at their current office are able to function no matter what happens.

“The backup generators that most buildings have are for the common areas and not for tenants. Only some buildings have prepared generators specially for tenants, and this is good for those buildings. From now on tenants will be looking to see whether the building has a spare generator for them to rent in an emergency,” he said.

“Here at CB Richard Ellis [at All Seasons Place], when the troubles erupted our server was in this building but we couldn’t get in.So we moved to Bitec, and were able to reach our server from there. We were lucky power to this building wasn’t cut so we were able to use our server normally, but even if power had been cut, All Seasons Place has a separate backup generator for tenants.”

He said that only five or six buildings in the city have a spare generator for tenants,but some buildings are able to share extra power from the generators they have installed for their common areas with their tenants. In addition, big companies such as banks, financial firms and stock traders usually already own their own generators.

Mr Nithipat warned that companies that have two offices should make sure that the electricity supply to both doesn’t come from the same grid. There are several power grids in Bangkok and some overlap in the inner city.

“Careful thought has to be given to the main location. Some companies have rented space in two to three buildings within the same district or neighbouring ones and when something happens such as the recent unrest,they can’t do anything at all.”

Mr Nithipat said that landlords should ensure that there is a contact person on each floor to help companies and their staff get out of the building in case of dire trouble.Landlords should also make sure that there is a secure fence around the perimeter of the building to slow down protesters who might want to break in.

It is also imperative to have a single point of access, with guards in place to exchange cards with all visitors.

“Right nowmany buildings are installing turnstiles – that’s where you press the card to get in. I think this is very important and tenants are also seeing it to be important.”

Buildings that have three to four access points, some of which allow tenants and visitors to get to the lifts without passing guards, are clearly compromising security.

“Tenants and landlords have to know where the visitor is going. Tenants usually have a card, but we don’t know anything about visitors and we have to find out,” said Mr Nithipat.

“It is essential for tenants to look into this,because when it comes to terrorism, there will be ups and downs continuously from now on.”

He also advised landlords that in addition to ensuring that tenants have adequate power backup, they themselves also must have sufficient emergency support because they hold vital information about tenants which could be needed in certain situations.

Following the political crisis in May, the Bangkok market seems to be back on track in project sales. However, what is happening in the southern resort markets such as Phuket is not as clear to the market,

At present, the majority of transactions in Phuket are concentrated in the lower-end, for example, inland condominiums with easy access to the beach. This affordable market segment continues to generate consistent demand from locals and foreigners with limited budget.

On the other hand, there is a market gap for mid-range products. With a combination of the fragile global recovery and Thai politics, there is a need to re-assess market trends. Buyers’ profile and demand for resort properties have evolved in terms of product requirements and budget. There is a gap for mid-priced quality properties with smaller unit sizes.

In the high-end villa market, there will always be ongoing demand for prime ocean-front properties, but there is also a supply limitation due to lack of prime sites. Prime ocaean-front land prices have held up firmly during the past two years. A recent transaction of a 40-rai ocean-front site near Amanpuri reportedly sold at Bt18 million per rai (a price not far off form peak prices in 2007) clearly demonstrates this.

Product in the new cycle will evolve based on these changing market factors.

In terms of buyers’ profile, Hong Kong and Singapore remain the key markets. Buyers from UK and Europe formed a significat portion of the market, but the pool of buyers from these markets has reduced with weaker European currencies and the global crisis.

The group of active foreign buyers in Phuket are those well acquainted with Thailand. Foreigners new to the market tend to hold off investments for now due tho the uncertain political climate.

On the development side, Thai developers are playing a more active role in Phuket, Many already have strategic land holdings in Phuket and they will be the driving force for resort-market development in the next few years.

With the right fundamentals, Phuket has continued to hold firm on prices driven by limited supply and maintained its leading resort market position backed by its enduring appeal amongst investors. But although the market has shown resilience to politics and gradual improvement in residential sales as global markets recover, we should also look at what regional neighbours are doing.

Bali is one of Phuket’s growing competitors with a direct foreign tourist arrival of 2.2 million in 2009. However, Phuket remains the bigger value market as supply of residential projects in bali is mord limited and there are fewer large-scal projects and choices for purchasers.

Vietnam also has an emerging coastal market in Da Nang and Nha Trang. Development in Da Nang began in early 2000 and currently has an active second home market mainly driven by local buyers. Prices in Da Nang are not for off from Phuket, but with a product quality that is still not comparable.

Lastly, Cambodia’s coastline offers significant potential with superior beach quality and natural resources compared to Thailand on private islands such as Koh Rong. Pioneering investors entering the market now will enjoy entry prices and significant long-term capital gain.

While these resort markets have a hill to climb before reaching Phuket’s status, Thailand should not underestimate their potential. One area Thailand lags behind is in foreign investment policies and ownership structrue. Vietnam offers 50-to 70-year lease terms, Malaysia newly emerging market like Cambodia is offering 99 years. Phuket undoubtedly has an enduring appeal, but it should continually develop to keep in line with the competition.

สัมมนาฟรี  กรุณาลงทะเบียนสำรองที่นั่งล่วงหน้า  ที่นั่งจำนวนจำกัด

ดาวน์โหลดแบบฟอร์มลงทะเบียนงานสัมมนา

ติดต่อสอบถามข้อมูลเพิ่มเติมที่ คุณ จิติมา โทร 02 654-1111 ต่อ 608 หรือ อีเมล์  jitima.sindhusaard@cbre.co.th

The first target markets are Vietnam and Cambodia because of their proximity, level of development and the local competition is not as well developed as the more mature markets such as Malaysia.

There are a wide range of opportunities in the Vietnamese and Cambodian markets from city centre office, retail, residential and hotel developments through to the growing resort markets in these countries as well as industrial estate opportunities.

Entering new markets is always a challenge.  Rules and regulations governing property development and ownership are different.  The dynamics of each of the property sectors in these countries is also different to Thailand.

Accurate information on regulations, supply, demand, pricing, competitors and prospects for each property sector is essential for a Thai developer to succeed in a new market.

CBRE is well placed to advise Thai clients on how to enter these markets.

CBRE established offices in Vietnam in 2003 and now has over 200 real estate professionals operating out of offices in Ho Chi Minh City, Hanoi and Danang.

The research, consulting and marketing teams have already worked with a large number of overseas developers who have successfully built projects in both the main cities and resort areas.

CBRE established and office in Phnom Penh in 2009 and have been advising clients on the Cambodian market for many years before the office opened.  Mr. David Simister, Chairman of CBRE Thailand, Cambodia and Vietnam advised the Australian Government on the acquisition of a new site for their Phnom Penh Embassy in 2005.

“There is very little publicly available information on the Vietnamese or Cambodian markets.  CBRE sells and leases properties in these countries everyday which is why we have the best market data on actual transactions and future supply.  This enables us to provide our clients with the best market data giving them the best knowledge to enable them to succeed,” said Mr. James Pitchon, head of research and consulting for CBRE Thailand.

There are opportunities for Thai developers to acquire or build properties in both Cambodia and Vietnam but accurate market research will be critical in order to succeed.