Weekly Thailand Property News 31 July - 4 August 2023

Court Halts Ashton Asoke Project; Stakeholders Seek Swift Legal Solution

Ananda Development has acknowledged the Supreme Administrative Court's verdict revoking the construction permit of the "Ashton Asoke" project, an establishment alleged to be built unlawfully on expropriated land. This ruling has sent shockwaves across the real estate industry, with potential ramifications on foreign investment in Thailand's property sector. Ananda CEO, Mr. Chanon Ruangkritya, underscored the company's unflinching commitment to honesty and integrity, expressing the significant impact of the decision. The repercussions are not confined to Ananda but extend to the numerous stakeholders involved, including 580 families owning a total of 668 units, along with 438 Thai and 142 foreign clients from 20 different countries. In the face of this legal quandary, the company seeks a resolution within 14 days to prevent the substantial cost of demolishing the building. Agreeing with this sentiment, Legal advisor Mr. Phisit Dechchaiyasak pointed out that potential amendments to the law could serve as a beneficial solution for all projects impacted, not solely Ananda's.

Reference: https://www.bangkokbiznews.com/property/1080823

Ananda Faces Major Real Estate Crisis as Court Revokes 'Ashton Asoke' Condo License

The Supreme Administrative Court's verdict to revoke the construction license for Ananda Development Public Company Limited's "Ashton Asoke" condominium project has prompted a major crisis in Thailand's real estate sector. Ananda must now decide between two complex solutions - demolition or creating a new entrance and exit for the property. While demolition brings questions about cost and compensation, creating new access points necessitates the purchase of expensive adjacent land. With banks declining to refinance buyers' units, many are caught in a financial bind. Despite the high stakes, Ananda can still apply for a new construction permit if access issues are resolved. However, for those unsure about the project, potential legal recourse remains an option. This crisis poses a significant challenge to Ananda's brand and to Thailand's real estate industry as a whole.

Reference: https://www.bangkokbiznews.com/property/1081113

Noble Reassures Customers on Legal Compliance Post Ashton Asoke's License Revocation

Following the Supreme Administrative Court's decision to revoke the construction license of Ananda Development's "Ashton Asoke" project, Noble Development Public Company has taken measures to assuage customer concerns regarding two of its own projects, New Noble Ratchada-Ladprao and Noble Revolve Ratchada 1,2. Unlike Ashton Asoke, Noble asserts that these projects have abided by all legal requirements, including appropriate access to public roads. Co-CEO Thongchai Busrapan and CEO of the Business Development Division, Thirapol Voranithiphong, reassured customers that the entrances and exits to these projects are legally compliant. The New Noble Ratchada-Ladprao project, currently valued at 2,000 million baht and 80% sold, is set for transfer in early 2024. Noble Revolve Ratchada 1 and 2 have already seen full transfers of ownership.

Reference: https://www.bangkokbiznews.com/property/1081463

New Government and Tourism Revival Key to Thai Real Estate Market Recovery, Say Industry Leaders

Despite negative influences slowing the real estate market, industry leaders remain hopeful that a new government could revitalize the sector. Uthai Uthaisangsuk, COO of Sansiri Public Company Limited, asserts the market's trajectory depends heavily on political factors and tourism. Rising costs, interest rates, and high household debt have created a challenging environment, with lower market home-buying becoming increasingly difficult. Sanphin Sukhee, CEO of Frasers Property Home (Thailand) Co., Ltd., echoes these sentiments, pointing out a marked slowdown in purchasing power and increased competition, especially within the high-end market segment. Both leaders agree that effective governmental measures and the possible return of Chinese tourists could stimulate the market recovery.

Reference: https://www.bangkokbiznews.com/property/1081641

Ashton Asoke Residents Prepare to Sue Ananda Development for Over $150M Amidst Building Permit Controversy

The residents of Ashton Asoke, an upscale condominium project managed by Ananda Development, are gearing up to sue the developer for over 5 billion baht ($150M) in damages, excluding interest. This development follows Ananda's assertion that the residents have always been aware of the contentious project impact. Pisut Rakwong, the residents' lawyer, dismissed this claim, stating it merely represents Ananda's legal defense against the accusations of rights deprivation. The legal issue centers around a ruling by the Supreme Administrative Court concerning the Ashton Asoke project. The residents have sought legal advice, are considering both civil and criminal lawsuits, and have requested Ananda to show sincerity by attending a meeting with the representatives within seven days.

Ananda Development has put forward five potential solutions to the ongoing conflict:

1. Application for a new construction permit: This would involve purchasing or seeking additional land to meet the requirements of the building permit.

2. Lobby for legislative changes: Ananda may propose amendments to relevant laws through the Bangkok Public Works Department, Department of Public Works, and Town & Country Planning Ministry.

3. Work with Mass Rapid Transit Authority of Thailand (MRTA): Ananda may suggest legal amendments through MRTA, channeling the proposals via the Ministry of Transport to the cabinet.

4. Coordinate with original landowners: The company may liaise with the original landowners to review the rights to the land at the entrance and exit of the MRTA station. They aim to ensure sufficient space (12-13 meters) for tall and extra-large buildings.

5. File a petition for a new court trial: Based on new evidence that may alter the facts of the case, Ananda might ask the Administrative Court for a new hearing.

Residents accuse Ananda of a lack of transparency and responsibility and demand the company take ownership of the problem. Ananda, however, insists that the residents have been informed about the situation consistently.

Reference: https://www.bangkokbiznews.com/property/1081861

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