Govt urged to hammer out unfinished buildings plan
The Finance Ministry's plan to tackle the problem of incomplete buildings has been welcomed by property developers and consultants, but the ministry has been urged to come up with workable details if it wants the policy to yield economic benefits.
Finance Permanent Secretary Suparat Kawatkul said yesterday the ministry had taken a leading role in discussing the issue with property-related agencies, including the Thai Bankers' Association, the Government Housing Bank, Bangkok Asset Management and the Industrial Property Information Centre. A total of 508 building licences for development in Bangkok and the surrounding area were issued in 2001, but 281 buildings remain incomplete. "The 281 buildings' combined usable space is 6.2 million square metres. If that were made use of, it would add great value to the economy," said Suparat. Property Perfect Plc director Teerachon Manomaiphibul said making use of these non-performing assets would stimulate the economy. "But it depends on details. If the buildings were to be turned into condominiums, that could lead to price-cutting, and that would hurt condo developers. But if they're developed into office buildings or shop houses, where demand outpaces supply, this would greatly benefit the market," he said. Teerachon said commercial banks that took unused buildings as collateral usually quoted too high a price when approached by developers. He urged the government to offer tax privileges for developers to take up the incomplete buildings, helping them reduce development costs and ensure that the property would not encounter marketing problems. Benjawan Suewongprayoon, assistant director of property consultant Jones Lang LaSalle, also supported the ministry's plan but expressed concern about the safety of the buildings. They could have structural problems, because of their age. She also urged developers to ensure that locations suited the buildings' original marketing plans. They also need to take market demand into account. "If there's no demand for such properties, there would be no economic value as expected," she said. "The government needs to plan how many buildings should be completed in a certain period of time, not to complete all of those buildings at once. That can't be good for the economy." Suparat said the ministry had also instructed the Industrial Property Information Centre to gather details of incomplete buildings upcountry, because some could be part of banks' non-performing assets.
Somluck Srimalee The Nation
|
