Kiatnakin Bank Plc hopes to sell 33% more non-performing assets (NPAs) this year than it did last year as interest rates are low and the economy is improving, says president Tawatchai Sudtikitpisan.

He said investors would be more interested especially in land plots as the economy heals. The bank aims to have 4 billion baht in NPA sales by the end of 2010, up from 3 billion last year.

“Many large developers have begun to buy NPAs after they froze investment last year. They were concerned about the economy but now it is not that bad,” said Mr Tawatchai.

The bank will offer 270 NPAs nationwide worth a combined 1.5 billion baht with discounts of between 20% and 60% until Feb 10. Among the offerings, about 75% would be land plots, 12% single detached houses, 6% commercial buildings, 3% office buildings and 1% townhouses.

At the end of the third quarter of 2009, the bank had at least 2,000 NPAs worth 7.3 billion baht. They made up 6% of total assets worth 120 billion baht.

Mr Thawatchai said the bank’s NPAs were on a downward trend. As at the end of 2008, NPAs were 7.6 billion baht and they had declined by 4% to 7.3 billion as of the end of September 2009. After 2011, the total should be below 7 billion baht, he added.

NPAs of the bank’s project finance customers accounted for 10% of its total real estate portfolio, or 1.5 billion baht. Most of these properties became NPAs between 2002 and 2005 and debt restructuring remains unfinished.

Last year Kiatnakin gained more project finance customers rejected by major banks and it expects 2010 will be better.

“Loan demand this year will not be that high as investment from the Thai Khem Khaeng stimulus programme might be delayed and the Map Ta Phut problem has caused foreign investment to hold back,” he said.

KK shares closed yesterday on the SET at 26 baht, down 50 satang, in trade worth 50.9 million baht.

SOURCE: Bangkok Post

The Thai government will push for cabinet approval of a new land and buildings tax, according to Finance Minister Korn Chatikavanij.

The new tax is set to impose an annual charge on land assets and property throughout the Kingdom, with local administrations being given the ability to set flexible rates based on individual priorities and needs.

Rates are also expected to vary depending on how the property is utilised, such as whether it is being used for agricultural, residential or commercial activities.

Currently 90 per cent of tax revenues come from income taxes. The Ministry expects the new tax will help to expand the tax base and improve social justice.

SOURCE: Property Report

BANGKOK, 16 December 2009 (NNT) – Positive results in the real estate sector are anticipated if the government extends its tax measures to assist the business, says Kan Prajuabmoh, Managing Director of the Government Housing Bank.

According to the director, it depends on the finance minister whether the tax measures would be prolonged. Mr Khan however said that the real estate business in Thailand would not be affected much if the minister decided to cancel the measures since the sector was still strong.

Finance Minister Korn Chatikavanij is expected to decide on the matter in March next year.

Mr Khan said his bank had set its 2010 lending target at 8.8 billion THB but it might be adjusted in line with the government’s monetary policy next year. He also speculated that real estate competition in 2010 would be fiercer.

Meanwhile, Assistant Director of the Real Estate Information Center, Sammana Keetsin, urged the government to impose long-term stimulus measures for the real estate sector and adjust the existing tax measures instead of canceling them. He warned that short-term stimulus measures would cause problems like economic bubble.

SOURCE: btoday.net

Supalai PCL, one of the most famous real estate developer in Thailand, sparks Phuket’s property industry up in the last period of the year by introducing its new condo project in Phuket downtown named “Supalai Park”.

The 15-storey condominium will be built on 4 rai land plot near Seng-Ho Book Store facing main road. Unit spaces vary from 29.5 – 66 sqm.

The condominium has been designed under “Green Concept” which capture the best of both Phuket’s views and energy conservation. Gracing with swimming pool, fitness center, landscaped garden, parking space, 24 hrs security including CCTV, Smoke & Heat Detector, Fire Alarm, Access control both Magnetic card & Finger scan.

Open for reservation 2 days only at the sale office on Saturday 19th – Sunday 20th December, 2009. Price starting at a bit above 1 million baht or 3x,xxx baht for each sqm. Free wall type air conditioner, kitchen built-in furniture, water heater, safety glass shower screen. Choose for complete furniture packages* + special discount or double discount as much as 150,000-350,000 baht.

SOURCE: Phuket Index