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Udonthani Industrial Estate to drive the EEC

InvestMaN is back again with some interesting headlines for our readers. This time presents to you the story on the current development of Udonthani Industrial Estate. The mega project was officially announced some time ago and there have been several developments as the progress is made. Recently, Bangkokbiz has reported the details and the current status of this project. First, let’s dive into a brief background and overview of this new industrial estate. Overview Udonthani Industrial Estate is located in Non-Sung, Nong-Phai and Nongna Kham Subdistricts, Mueang District, Udonthani Province. Total area size of 2,170.63 rai The investment budget is approximately 100,000 million baht, divided into 2 phases: Phase 1 with a total area of 1,300 rai, which will be developed as a basic infrastructure system. Phase 2 is still awaiting the further development of the first phase. However, both phases will focus on industries with rich raw materials in the Northeast region, such as rubber as the main input for production of rubber gloves, etc. Currently, Phase 1’s construction is 75% complete and is expected to be fully completed within September 2021. In addition, an area of 600 rai is reserved specifically for the development of a logistics center and facilities. Development objectives Udonthani Industrial Estate has a geographical advantage as it is located close to transportation high-speed trains https://bit.ly/3BkuJOg that connect both domestically and internationally, namely neighboring countries and southern China. This supports the transportation of goods between Thailand and Southern China to Laem Chabang Port and the Eastern Economic Corridor (EEC). Hence, this industrial estate will serve as a regional hub for rail freight and logistics for CLMV countries and southern China. With a distance of only 60 km from the industrial estate to the high-speed train, the shipping time to southern China is shortened to just 1 day, also reducing the shipping cost by more than 5 times compared to previously when shipping was made out of Laem Chabang Port, consuming 15-17 days. Boosting the production and industrial potential of the northeastern region in full force In addition to attracting foreign investors such as China and Japan, the estate also supports low-cost SMEs and start-ups. Northeastern region of Thailand, also known as ‘Isan” is considered to be outstanding in many aspects, including lifestyle, traditions, and culture. It is also the biggest region in the country as well as having a large population size. Despite that, the general perception tends to view the Northeastern region as waste land and difficult to access. Therefore, the Udonthani Industrial Estate combined with the upcoming high-speed train and railway line of Bangkok-Nong Khai have the potential to drive and support the overall growth of the region. With the increasing demand of land for industrial or logistic purposes https://bit.ly/2Wvh1ZK, land prices could rise depending on locations. Therefore, land holders or one intending to acquire one for development should keep a close watch on the values before any transaction. Prospec Appraisal is happy to provide services and consultations for land valuation or even business valuation for owners. Moreover, we also offer additional services on feasibility study and site selection. Source : Bangkokbiz

Digital platform – the new battleground for real estate developers in the New Normal

With the Covid situation still lingering around making life tougher than it already has. Making a living becomes more and more challenging, no matter what industry or type of business you are in, public or start-up. We all have to adapt to this New Normal era in order to survive. Therefore, today InvestMaN would like to share with our readers the new approaches some of the big time development firms have taken after facing the COVID for two years. With the trend of buying single-detached houses continued to surge, as a direct consequence of COVID https://bit.ly/38WfBKK, real estate development groups such as Pruksa Co., Ltd. and SC Asset Co., Ltd. have taken a brand new sales strategy in order to adapt to this COVID era, as consumers use digital channels to search and buy a home. As a result, these development companies have increasingly focused on online sales channels, putting much more effort into online advertisements. SC Asset Co., Ltd. has introduced the marketing way of viewing property, “Drive-Thru View House SC”, to assure customers of their safety from the risk of infection by avoiding close contact. Social distancing is upheld between customers and project staff who have received two doses of vaccination. In other words, it is a one stop service that is convenient and safe for customers who can visit projects as if it’s in-person visitation through the drive thru style, with assistance of sales staff who provide all the information via VDO call. Apart from drive thru service, Pruksa Co., Ltd. has turned its focus on the e-commerce frontier, such as providing Facebook Live, taking virtual tours of various projects to help the potential buyers make a preliminary decision before making a personal appointment and visitation. For condominium projects, Pruksa also provides information to customers via LINE for convenience and risk-free. Reservation or purchase transactions can be done through the company official website, along with various promotions and concessions offered to the customers. However, with the overall poor economic recession since the COVID outbreak, the purchasing decisions become much more difficult and usually take longer times for potential buyers. Prospec Appraisal is here to provide consultant and appraisal services for land, houses and all types of property. People who are planning on moving to new places better suit the New Normal era, valuation of assets is important and should not be overlooked before buying or selling property. Credit to news and information sources : กรุงเทพธุรกิจ 955594 , กรุงเทพธุรกิจ 955761

Let’s get to know the “hotel” in depth.

Continuing from EP1. that InvestMan has already discussed about all types of hotels. Today we will continue to clarify hotels in terms of standards. We believe that most people acknowledge that there are many grades of hotels classified by the stars each hotel has, whether it’s 5 stars, 4 stars, 3 stars, 2 stars, or 1 star. Have you ever wondered what the criteria for determining these stars are classified by? What determines the level of a hotel? Today we are going to solve the doubts. The star standard of a hotel is not definitive but, it can be estimated. A 1-star hotel is usually a hotel with small rooms. Facilities are hotel amenities, moderate quality of furniture, some may have a bathroom or shared bathroom. Most of the food and drinks are charged. A 2-star hotel is usually a hotel with small rooms but larger than a 1-star. Facilities are hotel amenities, built-in furniture, private bathroom. Some may even have a restaurant within the hotel itself. A 3-star hotel is a hotel that is starting to have a bigger room. Facilities are hotel amenities, built-in furniture, private bathroom. However, there is still no porter service. Some began to have a common area, a restaurant, a fitness room, and a swimming pool. A 4-star hotel is a hotel with large rooms, tidy, and well decorated, with a beautiful reception and porter service. There are several room types for guests to select. Facilities are hotel amenities, fully built-in furniture, and complete sets of common areas, including a business center, meeting room, and security center. A 5-star hotel is a hotel with large rooms, tidy, luxurious and well decorated, with a beautiful reception and porter service. There are several room types for guests to select. Facilities are luxury hotel amenities, fully built-in furniture, jacuzzi bath, massage room, provide 24 hours of service, and complete sets of common areas, including a business center, meeting room, and security center with customer care at all times. Hotel Standards and Types of Hotel Licenses in Thailand Hotel License Type 1: Suitable for 1-star hotels with less than 50 guest rooms that are around 8 square meters each. These hotels may have their focus on selling rooms that are not fancy, maybe with small furniture inside and not necessary to have an in-room shower or toilet. They may not have a restaurant, only serve food to hotel guests. For instance, small hostels that have their guests sharing rooms with each other may consider applying to this type of license. Hotel License Type 2: This type of License is for hotel and restaurant business with kitchen or dining space. Appropriate for 2-star hotels with rooms that are larger than 8 square meter. These hotels may have built-in furniture, space for guests to cook, or restaurants. Properties that hold this type of license could be budget-price bungalows or guest houses that provide a little more facilities than the first only hotel business license. Hotel License Type 3: The third type of license includes hotel rooms, restaurant, kitchen, dining space, and seminar rooms. This license type requires a guest room area which is not less than 14 square meters each, most appropriate for the 3-star hotels to apply for. Hotels that fall under this category mostly welcome long-stay guests that come for either holiday or business. They may be business, airport hotels, or even service apartments. Hotel License Type 4: The last type of hotel license is for those with at least 14 square meters area in each guest rooms, restaurant, seminar room, and entertainment business. This type of license is suitable for 4-star-and-above hotels. These properties need to have 24 hours service and security. Located in either heart of the city or the best location out of town. Mostly they are extended stay or resort, or luxury hotels that are high-priced and have world-class service. Each type of hotel has its own rules and regulations. The measurements of standard levels and Hotel License application for each establishing type will be discussed more in the next episode. In case you are seeking help in hotel valuation, please do not hesitate to contact us. Credit source: : มาตรฐานโรงแรม , วิกิพีเดียโรงแรม

“Minburi Station”, the intersection of Orange-Pink, the new economic district to keep an eye on

The area is being closely watched by real estate developers. Minburi Station is not just a train intersection for the Eastern Orange Line (Cultural Center – Min Buri) and the Pink Line (Khae Rai – Min Buri), but it is considered to be a new economic district of eastern Bangkok. Transportations into the city center is extremely quick and convenient. When the Bureau of Land Planning and Development Reshape the City of Minburi According to the 4th update of the adjusted land use benefits of the city plan, Minburi will be a sub-center or suburban community where we can expect to see a lot of high-rise projects in the area where business will be conducted in the next 10 years. The color zone plan according to the city plan will be adjusted in order to support the idea of gentrifying the area around the station. It is expected to elevate the Minburi area to be equivalent to the city center such as the Silom-Sathorn area. Development news is gathering pace with various potential projects being earmarks such as mixed-use, including shopping centers, hotels, condominiums, office buildings, high rise buildings. Most recently, The Mall Group discussed with Bangkok regarding the acquisition of a large plot of land with over 100,000 square meters, which is subject to be developed into a shopping center. The new department store would become a magnet which would attract more developments in the area. Eventually, the color zone will change from yellow areas for less dense housing to orange areas for medium density housing and finally to the red area, which represents the commercial district by the year 2024. Source : Thansetthakij Original City Plan Year 2019 Source GoogleMyMaps When looking at the current Minburi city plan, it is found that the region is divided into two sides. On Ramkhamhaeng Road side on the left with Minburi old market, Saen Saep Canal, consists of 2 color zones: 1.Red, commercial land, FAR value 6 : 1 Designated to be land types Por. 1 to Por. 5 Land type Por 1 to be used as a commercial center of the community where businesses are conducted as well as a commuting center to facilitate the daily living of the people who live in the suburbs. Land type Por 2 to be used as a suburban community center to promote its centrality ofbusiness, trade, services and recreation to create a balance between housing and work for people living in the suburbs. Land type Por. 3 to be used as a commercial center of the city to support business activities, trade, service and recreation services to the general public. Land type Por. 4 for use as a secondary commercial center to promote centrality in service business and recreation in the area surrounding the service area of the mass transit system. Land type Por. 5 for use as the main commercial center to promote centralityin the business of recreation and tourism services in Southeast Asia. 2. Blue, categorized as land reserved for governmental use such as public institutions and facilities, is determined to be land of the type of Sor. to be a government institution and the operation of state affairs in connection with public utilities; or commonwealth The right side of Ramkhamhaeng Road consists of 3 color zones. 3.Orange, medium-density residential land, FAR value 4.5 : 1 Designated as land types Yor. 5 to Yor. 7. Land type Yor 5 to support the expansion of living in the area contiguous with the inner city Land type Yor 6 to support living in the area contiguous with the inner city area in the centersuburban community, industrial area and industrial estates Land type Yor 7 to support living in the area contiguous with the inner city area which is in the service area of the mass transit system. 4.Yellow, low-density residential land, FAR value 1.5 : 1 Designated as land type Y. 1 to Y. 4 – Land type Y. 1 to promote the environment of living in the suburbs. Land type Yor 2 to support expansion of living with a good environment in suburban areas – Land type Y. 3 to maintain a good living environment in the suburbs. Land type Yor 4 to maintain a good living environment in the suburbs where in the service area of the mass transit system 5.Red, see above. Source : สำนักผังเมือง กรุงเทพฯ

Foreign Investment in Thailand’s Real Estate

The COVID-19 epidemic and the long-awaited lockdown measures has resulted in a severe economic crisis in Thailand. Many businesses had to shut down. Industries have been negatively impacted. Despite that, the number of infections is still far from declining. The government cannot afford to wait out the pandemic before opening the country and restoring the economy that has been depressed for a long time now. Apart from welcoming back international tourists, the government has introduced changes to stimulate the economy. For this reason, InvestMan brings readers to the talking point of this article, policy for attracting foreigners into the country. In addition to the revenue stream from the tourism industry, the government has now loosened the regulation regarding real estate investment by foreigners in Thailand, in hopes that will attract more foreign investment, which could potentially lead to attracting more foreign talents and individuals with high financial status in the long run. This new measure focuses on the granting of a long-term resident visa as well as revising the land ownership law for foreigners in preparation for the year 2022 as follows Grant the right to a new long-term residence (LTR) visa for a period of 10 years, including dependents or spouses and children. Obtain an automatic approval of a work permit after LTR is approved. Exempt from having to report every 90 days Received the right to pay personal income tax on income in Thailand at the same tax as Thai nationals. Income tax exemption on foreign income outsider Thailand Right to own or lease real estate, including long-term land in a given area. Amend other relevant laws, such as the land ownership law, work permit, tax exemption and customs procedures, etc. However, foreigners who are entitled to these privileges must be: Highly wealthy individuals – minimum $500,000 of investment in Thai government bonds or foreign direct investment or in real estate with minimum annual personal income of $80,000 in the past 2 years and own a minimum of $1,000,000 in assets. Retirees aged 50 years and over – must have regular, stable retirement income from abroad and invest a minimum of $250,000 in Thai government bonds or foreign direct investment or in real estate including a minimum annual income of $40,000 Individuals who work from Thailand for employers in foreign countries Individuals with special skills/talent who work in Thailand or work for government agency or as university professor This may help reduce the current over-supply of property in the market in Thailand. This was due to the unfavorable economic conditions during the COVID pandemic, resulting in people’s fear of investment. Hence, the government expects that this ‘Thailand as a second home’ concept will increase investment in the country, generate income from taxation and increase jobs in Thailand. Therefore, this is the perfect timing for foreigners who are looking to buy properties no matter if it is for living or investing purposes. As an expert in real estate, Prospec is happy to offer advice related to whether it’s buying or selling of all types of properties. We also provide appraisal services to determine the value of properties before making an investment decision. Source: Bangkokbiz

EP3. Let’s find out more about Hotel and Hospitality Marketing Terminology

Continuing from EP2. that InvestMan has discussed about hotel standards and license types. We believe that people often use the term “hotel” when it comes to accommodation. However, sometimes, it might not only be a hotel. Therefore, InvestMan has gather a collection of terms that describe hotels and accommodations that provide different services so that during the next check-in, we will be able to call the accommodation with captions correctly. Hotel No matter where we are staying, we will get used to the habit of calling any accommodation a “hotel”. However, the actual description of hotel is to provide travelers with daily rental accommodation, meals and other services related to their stay. Multiple bedrooms lined up in one or more buildings. There are various services for the convenience of the customers, which are called “guests”. Guesthouse Travel trends in this era have changed a lot. More and more people are starting to travel alone. Guesthouse is quite similar to a hotel in terms of service but smaller. Provide room and breakfast only. Suitable for travelers with limited budget. Taking care by the owner and often shares the facilities with them. Give a warm atmosphere as if you are staying in your own home. However, nowadays the host often builds a separate accommodation for their privacy. Motel (Inn) Motels are popular in the United States, especially for those who enjoy traveling by car or road trip. A roadside room which is a standalone building with adjacent rooms along the length of the building and parking in front of each room. Rental rates are usually affordable. At present, attempts have been made to stop using the word motel, with the Roadside Hotel Association by using the term “lodging” instead. Hostel The hostel will feature a bunk bed in a shared bedroom. Most of them are shared bathrooms, no ensuite bathroom with separate male and female bedrooms, located in tourist attractions and the city center. The highlight is that it’s cheap. Resort The resort is a place for rest or recreation. Guests usually visit this type of accommodation during their vacation. The amenities are similar to hotel. Boutique Hotel Boutique is a property that looks beautiful. Try to find its uniqueness to attract customers. Outstanding in creativity in design. In the modern days, the words often twisted into “Stylish Hotel”. However, a boutique hotel is a small hotel that does not have all the functions of a 5-star hotel, which may be granted as a category 1 or 2. Bed and Breakfast of B&B It is an accommodation that offers only bed and breakfast service. Private accommodation where landlords share rooms for travelers to rent which is similar to homestay but smaller. Currently, it is often used to classify the room type which is often a compact accommodation with few bedrooms. This type of accommodation may not need to request for a hotel license. Airbnb Today, when we travel internationally, we think of the App Airbnb, a personal type of accommodation where homeowners share rooms for travelers to rent. No breakfast. Suitable for long-term rental due to the economical price, it feels like home, and has privacy. It is a personal accommodation service imported into a rental service platform. This does not qualify as a hotel. Bungalow It is a cheap accommodation for tourists and travelers. The bungalows do not equip with the amenities or modern luxury compared to hotels. The bungalows focus on nature. Most of them are located in tourist attractions, near the sea, on the hillside, etc. Villa Large house with swimming pool, elegant design, clearly proportioned, living room, bathroom, recreation room, kitchen, has facilities like a large hotel. Some even provide 24 hour room service. Residence Large vacation homes or pool villas that are sold out or taken by a central company to manage such as rent them out, release rooms when the landlord is not around. It has all the amenities. Serviced Apartment Apartments or condominiums for rent. Most are rented out on a monthly basis. However, the current trend is turning to rent more daily. It is very privacy with full facilities. Camping Tent accommodation. Popular to stay in where the weather and atmosphere is good such as forests or islands. No facilities, shared bathroom, everything must be prepared by yourself. Glamping Tent accommodation, but luxurious. It is similar to a dome or tent. Beautiful decoration which give the feeling of staying in a hotel. Complete facilities and private bathroom. CoachSurfing Most of this accommodation are in Europe and Japan, while in Thailand there is almost zero. no private rooms, living on the sofa or a crib under the roof of the house. It is suitable for low budget people to the least. Homestay Accommodation that must be shared with the landlord in village life community. There is a shared room or living area in the house. Accommodation converted from temporary. The facilities are adequate. Suitable for people who want to seek a new experience. Travel in depth with local people. Condotel Condotel is a combination of the words Condominium and Hotel. It is another type of condominium that has applied for a hotel business license. Can be rented for both long term and short term. (Daily/Weekly). This requires a license in order to operate as a hotel and must be approved by the majority of the residents, with some floors or the whole building set aside. Lodge It is another word that refers to accommodation which is similar to a motel. The fact that the name is consisting of the word “Lodge” is already told that it is a hotel such as the hotel called “Siam Lodge”, but to be clear that it is a hotel, put it all together as a Siam Lodge Hotel, it might be stacked, but it does not affect anything. As InvestMan has discussed about license and types of hotel in the previous EP, everyone probably knows that the classification of hotels for a permit is divided into 4 categories.

New Motorway Project from Nakhon Ratchasima – Maha Sarakham – Khon Kaen

New Motorway Project from Nakhon Ratchasima – Maha Sarakham – Khon Kaen This project has a 9-year timeframe starting from 2020, expected to be completed and ready for full operation in 2028. At present, the Department of Highways has already completed a feasibility study. The survey of the subject land for expropriation is currently underway and expected to be complete by 2022. The request for the approval of the project is due by 2023 in order to begin the expropriation process and construction. Details of the project are as per below: Total distance 202 km, 4 traffic lanes for vehicles The project value is approximately 103,915 million baht, divided as follows:-Civil construction cost 42,935 million baht -Land expropriation / Condemnation cost 6,505 million baht -Construction cost of toll gates and system works 6,206 million baht -Roadside accommodation development cost 2,352 million baht -Operating and maintenance cost 42,664 million baht -Other expenses 3,253 million baht 4,651 plots of land are to be acquired through expropriation, including 180 construction buildings. The expected traffic volume is 41,801 cars / day after project completion. In summary, the overall route of this motorway will start at Kham-Thale-So District of Nakhon Ratchasima Province, heading northeast direction. Then passing through Non-Soong district, Phimai district, and Non-Daeng district in that order. The route will cut through Highway No. 202 before passing through Sida District, Prathai District and Nong-Song-Hong District before cutting through Highway No. 207. The route then leads into the Kosum-Phisai district, then crosses the Chi River into Muang District of Khon Kaen Province, ending point of the project that will pass through 3 provinces in the Northeast region of Thailand. In addition to this initial plan, there are plans to expand the route to Nong Khai Province in the future as well. Stay tuned for more information. Credit the news source: Prachachat Thank you for the picture: Department of Highways

Invest:MaN will take you to survey the appraised value of land in Bangkok.

Invest:MaN will take you to survey the appraised value of land in Bangkok. The rising population combined with the growing economy, in contrast to land which is a limited resource. Demand for land for residential and commercial purposes are surging, therefore, land prices tend to increase over time. Let’s get to know the area in Bangkok metropolitan with high appraisal value. The land appraisal value that the Treasury Department has summarized according to the accounting year 2016-2019, is a general overview of the land price categorized by road. Note that they are not the prices per actual land plots which are traded in the transaction market. Those who wish to know the exact price of a particular land plot can check with related official authorities; the Land Department or the Property Valuation Office by the Treasury Department. According to the Treasury Department’s website, Land appraisal values in Bangkok are divided into 17 areas, we rank the top 10 most expensive lands by area as follows (price per square wa). Silom Road, the estimated price is 700,000 – 1,000,000 baht. Ploenchit Road 900,000 baht Rajdamri Road 750,000 – 900,000 baht Rama I Road 400,000 – 900,000 baht Wireless Road 500,000 – 750,000 baht Sathorn Road 450,000 – 750,000 baht Yaowarat Road 700,000 baht Thaniya Road, Patpong Road and Patpong 2 Road 600,000 baht Narathiwat Ratchanakarin Road 280,000 – 600,000 baht Ratchawong Road, Sampeng Road, Soi Silom 5, Soi Silom 6 and Soi Silom 8 550,000 baht. In addition to the above list, other areas with relatively high appraised land value worth taking notes of includes, Sukhumvit Road 210,000 – 650,000 baht Asok Montri Road and Thonglor Road (Sukhumvit 55) 550,000 baht Ratchadaphisek Road 350,000 – 450,000 baht Phayathai Road 400,000 baht Phahonyothin Road 300,000 – 400,000 baht Petchaburi Road 220,000 – 400,000 baht Ratchaprarop Road 300,000 – 350,000 baht Land for agriculture continues to command the lowest appraised value compared to other types of land. The cheapest land for agriculture is located in Bang Khun Thian area, the appraisal value is at 500 – 10,000 baht per square wa. Credit to news and information sources: Bangkok Business Treasury Department

Ministry of Finance ordered the Treasury Department to appraise the land value around the development project (expropriation) that will be used in 2022.

Mr. Arkom Termpittayaphaisit, Minister of Finance, has passed on the latest policy in which lands located in various areas are subjected to be re-appraised/reevaluated to determine the values which reflect the real worth of the lands. This action is to be taken by the Treasury Department, in coordination with the Department of Lands and related agencies such as the Department of Highways, Royal Irrigation Department and other agencies, involved in the infrastructure development including roads, electric trains and irrigation systems. The new appraisal values are scheduled to be effective by the year 2022. There are several elements which influence the valuation of land. Government public infrastructure development projects are one of the most important factors. Therefore, in order to obtain the most accurate prices from appraisal, the valuation of land must take into account this part as well. Many regions which have seen developments tend to increase in prices. Other factors affecting the appraisal includes the level of business and commerce prosperity within the area. The convenience of transportation routes after the development of the electric train, motorway, and new roads to facilitate travel. Land with these infrastructures will have a higher price. By updating land value through appraisal, the huge differences between the existing appraised value and the actual purchase price in the market are narrowed down. In addition, the Ministry of Finance has given an extra push for the more efficient use of state properties and land, for both commercial and social development projects. The minister emphasized particularly on development of residential projects for low income workers in order to improve the general well-being of the people. This policy is in collaboration with the Government Housing Bank (GHB), who will serve as the main credit lender. As a result, Invest:MaN expects a greater demand for land valuations from, both the public and private sector, due to the increasing awareness by the government on the appropriate appraisal value that should be in line with the rising number of basic and infrastructure development projects, both on-going and future. Prospec Appraisal is here to provide services or consultation on appraisal of all types of properties. Contact us via many channels below. Credit : Thansettakij

Udonthani Industrial Estate to drive the EEC

Digital platform – the new battleground for real estate developers in the New Normal

Let’s get to know the “hotel” in depth.

“Minburi Station”, the intersection of Orange-Pink, the new economic district to keep an eye on

Foreign Investment in Thailand’s Real Estate

EP3. Let’s find out more about Hotel and Hospitality Marketing Terminology

New Motorway Project from Nakhon Ratchasima – Maha Sarakham – Khon Kaen

Invest:MaN will take you to survey the appraised value of land in Bangkok.

Ministry of Finance ordered the Treasury Department to appraise the land value around the development project (expropriation) that will be used in 2022.

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