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PROPERTY HUA HIN RESIDENTIAL, RESORT AND INVESTMENT OUTLOOK
Golf-club villas, condos debut
Thai-Swedish venture offers memberships
KANANA KATHARANGSIPORN
Hua Hin _ Thai Nordic Property Co Ltd, a joint venture between a Thai lawyer and a Swedish investor, plans to launch sales of villas and condominiums in Black Mountain Golf Club in Hua Hin, using a membership strategy to attract foreign buyers. General manager Cheeravat Choojitarom said that since laws restricted foreign ownership while 30-year leases often were not clear, the company would set up a new firm, Black Mountain Hua Hin Co, to own the residential units in the project and customers buying the units would become shareholders of the firm.
''All buyers cannot own the units but their memberships can be transferred,'' he says. ''This is the best way to allow foreign buyers to own a villa, a house or a condo in the project.''
A villa buyer will receive four lifetime golf-club memberships, a two-million-baht lifetime membership for Paolo Hospital and an Elite Card, provided he qualifies for it.
While packages for buyers of condominiums and single houses are being considered, each would receive a lifetime membership for the golf club, he said.
Situated on a 1,200-rai mountainside site 10 kilometres from Hua Hin town, Black Mountain Golf Club, which comprises an 18-hole golf course, residential units and a four- to five-star hotel, will have a total value of 12 billion baht.
The first development, on which work began early last year, was the golf course, which opened two months ago, said Mr Cheeravat.
The residential part is divided into two phases. The first comprises 43 villas sized from 500 to 600 square metres and priced between 40 million and 45 million baht each. There will also be two three-storey condominiums with 120 units sized between 137 and 300 sq m and priced from 10-35 million baht, and a 90-room hotel to accommodate golf tournaments.
Currently, 15 villas are being constructed and are scheduled to be completed by the end of the year.
The second phase, which is being designed, is a housing project with 400 units priced from 9-25 million baht.
The company will launch sales of the first phase in August and aims to close sales within 18 to 24 months. Target buyers are Scandinavians, British and other Europeans.
''The Swedish investor [one of the project owners] plays golf. He visited Hua Hin as a tourist and he loves it here,'' said Mr Cheeravat. ''Since the coup, he has been concerned about the situation but now feels more relieved.''
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New villas for rent aim for 8% return
KANANA KATHARANGSIPORN
Hua Hin _ The property developer AKA Resorts Limited will launch a new 800- million-baht luxury resort, the AKA Resort Guti Kiri Villas, targeting foreign and Thai investors with a projected yield of 8-12% a year, says James A. Ngai, the firm's director and legal counsel. The project will be located on a 50-rai mountainside plot in Hua Hin, comprising 95 private-pool villas in two sizes _ 200-square-metre one-bedroom and 255-sq-m two-bedroom units priced at 8.5 million and 12 million baht respectively, with an additional one million baht for furniture for the rental package.
''We're selling it as a lease for 30 years, which can be extended twice. This won't be affected by the nominee law,'' Mr Ngai said.
The projected annual rate of return at 8-12% will be based on an occupancy rate of 35-50% while the owners can stay 30 days a year.
The resort, styled after an ancient Burmese-Chinese monastery, will have two phases. The first phase of the project has 35 units, with 30 units sold and 20 under construction.
The second phase, with 45 units, was launched for sale early this month, with Engel & Volkers as the sole sales agent. The remaining villas will be kept for rent by the company.
Currently, the company operates the AKA Hotel Resort & Spa, its first project in Hua Hin worth 500 million baht. The year-old resort now generates a 6% return for the owners with an occupancy rate of between 25% and 35%. Its room rates per night are US$400 for one-bedroom and $600 for two-bedroom units.
''Our two resorts are not situated on the beachfront, as we position it as a private and quiet getaway. It is only 10 minutes from the beach,'' Mr Ngai said.
The Zen-style AKA Resort & Spa is located on a 30-rai mountain-view site, with 55 pool villas priced at about 10 million baht each.
Thirty-three villas are owned by investors from Thailand, Hong Kong, Japan, South Korea, Singapore, Australia, United States, United Kingdom and other European countries. The buyers represent various professions including businessmen, lawyers, doctors and bankers.
''The resort is sellable and it can grow more if people take part in it,'' said Mr Ngai, adding that the company was keeping 12 villas for rent. Room rates range between $200 and $600 a night, depending on seasons.
Established in Hong Kong and founded by a Japanese fashion designer under the Kinji brand, the company formed a joint venture in Thailand with a Thai partner in late 2004.
''The founder wanted to express her idea of humbleness yet elegance and simplicity with high quality not only in clothes or fashion but also in a property resort,'' Mr Ngai said. ''Thailand, China and Japan have some common connection in Buddhism.''
The company plans to use the AKA brand for resort development. New projects will be on Koh Samui where it will use a new concept for resort development, said Mr Ngai, a former lawyer who specialised in property at AIG Investment in Hong Kong.
He said the slowdown in property sales in Thailand was being caused not only by political uncertainty but also by the stronger economies of its neighbouring countries including Vietnam and China, where GDP is growing more than 10%, attracting many overseas investors.
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Hua Hin service centre for foreign buyers
KANANA KATHARANGSIPORN
Hua Hin _ In response to Hua Hin's growing property market, a special centre will be set this October to provide foreigners with one-stop service and educate them about property, says Sanit Boonkorsakul, the deputy governor of Prachuap Khiri Khan. He said the centre would link visitors to main government services responsible for property transactions and related issues. They are the provincial land office, commercial office, business office, labour, social welfare, local police and immigration police. The private sector would also support translation and guide services.
The centre would be located in the former Hua Hin district office near the Thesaban junction and open on government workdays from 8:30 am to 4:30 pm.
Mr Sanit said there were 17 new firms registered in Prachuap Khiri Khan in June, reflecting the boom in the province's property sector. Of this figure, 14 are property firms and three are hotels. About 14 firms in Hua Hin are joint investments between foreigners and Thai partners.
He estimated that investments of five billion baht had flowed into the Hua Hin property sector during the past three years.
The province's growing property market is attributed in part to the slowdown in the Andaman provinces after the 2004 tsunami, and the violence in the Deep South, which prompted people to look elsewhere for second residences.
Mr Sanit said that 70-80% of property buyers are foreigners and Thai tourists while the rest are locals and others from the Deep South.
''The province has gained interest among businesspeople and investors from both Thailand and overseas. The centre would help them run businesses legally and also prevent [the development of a] mafia in Hua Hin,'' says Mr Sanit.
According to Police Major General Noi Wannapaibool, the police chief of Prachuap Khiri Khan, there have been many disputes between property buyers and developers.
Most involved parties from the same nations.
''Property buyers did not know [they were being cheated] until they paid all expenses and found they did not receive that property because it could not be transferred,'' he said, adding that property developers and owners should be transparent in doing business.
Meanwhile, buyers should check whether the developers legally own the rights over the land plots and hold permits for housing development.
''If the case is in court, it will take up to three years. It's a waste of time,'' said Pol Maj Gen Noi.
