Published on October 18, 2005

In an effort to stimulate a sluggish housing market, the Home Builder Association next year hopes to launch housing projects in cooperation with landowners.

President of the association and managing director of Four Pattana Co, Pramote Thirakul said that the first showcase project is expected in Nakhon Ratchasima, where the landowner and association members will co-develop a detached-house project.

By doing business this way, he said both landowners and home builders would enjoy a win-win situation. It would also benefit home buyers.

Sompong Kitimahakun, managing director of The Modern Group, a member of the association, said that the project should become a business model for home-building firms from next year onwards.

Under the concept, landowners will be able to sell their land at higher prices while home builders will be free from having to pour huge amounts of money into accumulating undeveloped land as housing developers do,” he said.

“At the same time, people will be able to buy houses at reasonable prices.”

Two contracts might be made for the home buyers: one for buying a piece of land from a landowner and another for buying a fully built house.

Pramote said the pilot project in Nakhon Ratchasima, featuring 80 rai of land, is under a process of feasibility study and is expected to be implemented next year.

The details of the style, pricing and number of houses have yet to be decided.

He said many of his association’s members were interested in joining the project. Conceptually, the project will be operated as a joint venture between interested members who provide skilled labour in different areas. Not only general landlords, but commercial banks who are left unused land seized from defaulted debtors are also a target, said Pramote.

“We are still open to discuss potential business deals with landowners and commercial banks,” Pramote said. “Investment will mostly go to prime land locations.”

He said the potential plots of land should be larger than 30 rai. The association will provide full support in architecture and construction.

“The concept will help reduce overhead costs by 5 to 7 per cent,” he said.

To boost sales next year, Pramote said that it would hold two events: “New Home Builder Expo”, between January 27 and February 1, and “Home Building Expo” in August.

“Emphasising high quality standards and trust-building among consumers will remain the key job over the next year,” said Pramote.

He said that the home-building market next year will show an ongoing positive trend of gaining trust from consumers. He expects the home-building market in 2006 to reach Bt8.5 billion, 24 per cent of the total market and an increase of 20 per cent on 2005.

Sasithorn Ongdee

The Nation

Post your comment to this story here