Harrison eyes Singaporean investors for local property
Property brokerage firm Harrison Plc plans to increase its marketing activity towards Singaporean investors next year as interest from local investors is waning.
Executive vice-president Kitisak Jampathippong said success in the local property market next year would depend more on partnerships in terms of financing and development.
''The current volume of the stock market is quite small. It's hard for companies to raise funds to invest so listed developers will use project financing to fund their real estate ventures,'' he said.
He added that in 2006, the number of new projects would decline with only large developers in the market due to rising interest rates and the higher costs for fuel and construction materials.
Harrison plans to launch a tender offer for 200 properties in Hua Hin and Pattaya worth a combined five billion baht to run from Oct 20 to Nov 20.
From the offer, the company expects to generate at least 600 million baht in sales, according to Mr Kitisak.
Over the past two years, properties in Hua Hin have gained in popularity among Belgian, Dutch and British investors, while interest for real estate in Pattaya has picked up among investors from German, Russia and other Asian countries.
In Hua Hin last year, 15 new projects worth a combined three billion baht were owned by overseas investors while ten projects worth ten billion baht were locally owned.
Land prices in Hua Hin doubled from 400,000-500,000 baht to one million baht per rai.
Properties for sale in the tender include single houses, condominium units and projects, vacant land, a hotel and a golf course. About 60% the property is owned by local developers and the rest by financial institutions.
Bangkok Post 20 October 2005 www.bangkokpost.com
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