PRESIDENT Park Hotel, a luxury high-rise residential project in central Bangkok, is tipped by investors and two major banks to be a star performer on the world property stage. Property consultant Richard Ellis said the development was being built to international standards and would be equivalent to any major residential development anywhere in the world. According to Richard Ellis (Thailand) associate director Greg Harris, 65 per cent of the development has been sold since the project was launched in July. The development, next to the Royal Sukhumvit Garden, will be completed by the end of the year. Mr Harris said that investors were being given the option of leasing their property back to the developers at eight per cent of the purchase price for up to two years. ''This is to remove the investors' risk of not finding any tenants. The developer will be able to sub-let the condominiums to other occupants so that in the end, when the investors move in, they will find a vibrant living environment,'' he said. A significant feature of the Thai property market over the last two years has been the legal ability for foreigners to own up to 40 per cent of the saleable area in any luxury residential development, following the passing of the foreign condominium lawin 1991. For good projects, the 40 per cent quota is often sold out. Foreigners are also allowed to own freehold titles and borrow money against the property, therefore reducing their equity investment in Thai property. Some developers have taken to arranging bank loans available to both locals and foreigners. Foreigners are also allowed to borrow money overseas, in a foreign currency of their choice, with a Thai bank giving a letter of guarantee against a mortgage on the property. This enables them to borrow money overseas and bring it into Thailand to invest in luxury residential projects.
