Knight Frank Brokerage Victim of Internet Hoax

An email which has been circulating throughout the island which said international property firm Knight Frank was shutting down their Phuket office due to financial reasons is an apparent hoax.

We spoke to respected KF Managing Director Phanom Kanjanathiemthao at their head office in Bangkok who said a series of malicious emails sent through Yahoo and Hotmail accounts which had his name attached were fraudulent.

He reiterated that the firm has no plans to discontinue operations on the island and is taking a long term view of real estate here as a solid business proposition.

Identity theft and rising internet business sabotage are unfortunately on the rise and for many the message is clear, to always check the facts.

Aerial Survey For All Thailand Property

On the heels of the Government initiative of Prime Minister Abhisit Vejjajiva’s sweeping land tax reform it has been announced that an aerial survey will be conducted thought out all of Thailand.

Key to this will be the ability to identify classifications on land deemed to be used for agriculture purposes and protection of public land.

Secondly the tool will aid in the continuing battle over encroachment into forest areas which have continued to be decimated by illegal tree cutting and erection of structures in these areas.

Estimates by the Finance Ministry have estimated that 70% of the private land holdings in the country are simply being land banked and not developed.

Vietnam Set To Cool Down Property Market

With mounting worries back of the overheated domestic property market the Vietnamese Government is taking steps to maintain a strict monetary policy until 2011 as it plans to tighten up bank financing and consumer credit.

While many experts saw 2007 as a boom period, currency devaluation and hyperinflation hit the local property market in 2008-2009.

This year the real estate sector has been ramping up, stricter controls are being implemented by the State Bank on Vietnam to ensure sustainable growth.

ZERO TAX Thai Government Offers New Corporate Incentive

A new incentive has been rolled out by the Thai Finance Ministry for international companies who wish to use the country as a regional headquarters.

Under the new plan a tax waiver will be offered for 15 years which expanded on the current program.

Under the tax regime a zero tax would be applicable for money earned outside of the country, while onshore taxation rates of 10% for the term.

Expatriates working for these firms also look to benefit with reduced income tax of 15% for the initial eight years.

There are a number of precursors for the incentive including proportion of revenue earnings from outside Thailand and certain approved industry.

Expectations are keen for further BoI (Board of Investment) incentives to come out in the coming months. For many foreign land ownership remains a pressure point and remains a key point of discussion between the private and public sector.

Changes For Phuket Environmental Regulations Announced

A change to current regulations is expected to have substantial impact on development on the island which will see a new environmental regulation come into place for Phuket by the third quarter of this year – 2010. The existing guideline titled “The Announcement of the Ministry of Natural Resources and Environment – Specifications of Environment Protection Areas and Measures for Phuket B.E. 2546 is set to expire on September 30th.

“The Thai Government has released a new draft which has been reviewed by leading Bangkok legal firm Baker & McKenzie who have reviewed and released comments as follows:

The current version of the draft could substantially effect developments and land values in Phuket.

As an example land which is located in Zone 6 (40-60 meters above sea level) currently says that for slopes next exceeding 35% than buildings must be 8 meters or less.

Under the revision for slopes under 20% which allows 8 meters or less in heights for buildings, but for inclines of 20-50% only detached houses or single buildings of less than 6 meters in height are allowed.

For requirements in ‘open’ spaces, in the existing guidelines if an incline is less than 35%, then an ‘open’ area of not less than 40% of the total land area needs to be allowed.

On the new draft where slopes of 20-35% are existing, open areas of 70% are required while for slopes of 35-50%, then 75% must remain open.”

The legal firm expects final guidelines to come out over the next few months or prior to the end of September. For those wanting more information they can contact Baker McKenzie in Bangkok for details of the full draft.

If you are developing or renovating property that has significant slopes, a complete review of the issue and perhaps expediting of build permits prior to the new regulation coming into effect might be advisable.