Prices of Thailand Luxury Condo to Slide

As global economy heading south, analysts predict tt Thailand's luxury condo prices would fall by 10 - 20% in 1H09, despite being relatively cheap (abt 100k - 150k baht psm = S$4,3k - 6.5k psm) than S'pore/HK.

The luxury condo mkt deps on overseas investors as local Thai buyers prefer luxury detached hse to condo. Thai law forbids foreigners from buying land, but allows them to own up to 49% of the saleable space in a condo.

* AsiaOne-ThaiPty *

Not Looking Good - HK Property

A Reuters' poll showed tt HK & S'pore apartment prices were expected to drop abt 20% by the end of 2009.

In HK, banks are asking for 30 - 40% down payment instead of the usual 10%, leading to even fewer buyers and thus sellers are disposing their properties at 30% discounts.

HK pty transactions hit a 17-yr low in Nov, down 87% in value a yr ago.

* AsiaOne - HKPty *

1H09 Govt Land Sales

1H09 Govt Land Sales (GLS) Programme would only consist of sites in the Reserve List. Of the 38 sites fr this list, 37 sites were actually carried over fr the Reserve List and 1 fr Confirmed List in 2H08. No new sites will be added.

The 38 sites potentially yield:
(A) 7,920 pte residential units
(B) 512k sqm GFA of comercial space
(C) 5,160 hotel rooms

Outside the GLS Programme, the supply of sites includes:
(A) 40k sqm GFA of commercial space
- (i) 14k sqm GFA fr One-North
- (ii) 5k sqm GFA fr vacant state buildings
- (iii) Retail facilities at Sentosa, parks and MRT
(B) 240 hotel rooms
(C) No supply of pte residential units

* URA-GLS , AsiaOne-GLS *