Property Mortgages Direct By Developers

The Thai real estate sector is likely to see a major initiative by Thai developers who aim to offer direct mortgages. Back of the Financial Institutions Act 2008, loans can be made though not with publically raised funding.

A number of Thai listed firms are meeting with the Secondary Mortgage Corporate (SMC) to coordinate with financial institutions and look at securities rights issues to cover funding. SMC requires THB 300 million for firms listed on the Stock Exchange of Thailand (SET) while only THB 20 million for those who are privately owned or on the Market for Alternative Investments (MAI).

Property in the band of half a million THB up to ten million has been earmarked. The shift in developers moving into the mortgage business looks to propel the industry into unknown territory with some concern by industry experts on possible risk with smaller non listed firms operating in this space.

INSIDE MALAYSIA Political Volatility Hitting Investment

Thailand’s next-door neighbor Malaysia has foreign investors registering increasing concern over the current political issues facing the country.

With the coalition Government of Prime Minister Najib Razak coming under pressure back of recent racial tension between the majority Muslim and Malay population and ethnic Chinese and Indian there remains questions if peace can be maintained.

The country is registering high on the radar of many political and risk management analysts who voice out opinions that international investment will be hit hard including the property and real estate sectors unless the current groundswell of sentiment can be neutralized.

While Thailand and the upcoming landmark Supreme Court ruling on the assets of deposed Prime Minister Thaksin Shinawatra had been touted as one of the regional hot spots, Malaysia is now moving increasingly into the limelight.

OVERSEAS PROPERTY BUYERS Mainland Chinese

As thephuketinsider is in Hong Kong one of the areas of upward growth is the continued momentum of Mainland Chinese buyers into the property market. It’s now estimated by industry analysts that Mainland buyers now make up 20% of the market either through direct investment or by companies.

This is up 5% form the previous year, and two main drivers are low interest rates and cash liquidity to fund transactions. If Thailand is going to compete in the regional market the lack of debt continues to be the largest hurdle to attract international investors.

PREMIUM OUTLET MALL New Phuket Boat Show Opens

A new event debuts today with the Phuket Boat Show at Premium Outlet Mall on the Bypass road. Set to run until February 7th, the event will have a wide variety of exhibitors and looks to draw crowds from the current high tourist season along with local residents.

Cape Sienna Wins 2010 Travelers’ Choice Award

Leading global website tripadvisor.com has named Kamala’s Cape Sienna Hotel and Villas as a 4th place winner in the Top 10 Hotels for Romance in the World Category. No other Phuket hotels were ranked in the results of the 2010 Travelers’ Choice Award.