Thailand Business News –
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Despite the latest round of government measures aimed at curbing speculative demand, luxury residential prices in Hong Kong grew by 6.4% q-o-q in 4Q10, due to continuing rental growth and tight supply. On the other hand, prices in Singapore’s luxury prime market remained stable for the second consecutive quarter as buyers remained cautious after recent government tightening measures.
Of the eight featured luxury residential markets, five saw an increase in capital values during the quarter, while capital values remained stable in three cities (Singapore, Jakarta and Bangkok) and declined in Beijing. This compares with the previous quarter when five markets recorded an increase in capital values and the remainder saw stable prices. |
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| Thailand Business News |
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Asia’s luxury residential on the rise, but Bangkok lags behind
Thailand’s property sector is showing signs of an early recovery, as selective investors return to purchasing real estate stocks and actual property.
Some of the credit goes to a one-year government stimulus package that reduces the Special Business Tax from 3.3% to 0.11%, extends the reduction on transfer taxes from 2% to 0.01% and mortgage registration fees and provides a tax deduction on mortgage principal and interest.
Thailand’s property indicators show:
1.The Stock Exchange of Thailand (SET) index began rebounding in April 2009, and property stocks – while the first to fall in H2/08 – were amongst the first to recover
2. The Bank of Thailand (BoT) has lowered its policy interest rate four times since December 2008, prompting banks to reduce the minimum lending rate (MLR) from 7.25% to 6.25%
3. A continued drop in sales of durable goods due to uncertainty surrounding the economy is highlighted consumer confidence index (CCI) to a historic low of 72.8 in Q1/09 and New housing registrations in Bangkok and surrounding areas fell 43.8% in Q1/09
Instead of wasting resources when consumers were clearly holding back, we decided to restructure the company, clean up the balance sheet and refinance our debt with local banks.
Like Raimon Land, Prinsiri did not lower its prices : it was not all bad news, however, as the recovery soon took hold in the second half and by the fourth quarter GDP posted 5.8% growth and many developers reached their annual sales targets.
The tax breaks was initially introduced on March 2008, when the special business tax was reduced from 3% to 0.1%, and the transfer and mortgage fees cut from 2% and 1% respectively to 0.01%. These incentives were due to end on December 2, 2008, but have effectively been extended until the current May 30 deadline.
