• 
• 

Published on August 24, 2007

Global warming is real. At least this much is clear to developers who have witnessed the drastic changes in climate conditions that have affected the way they build homes today.

"Storms are becoming more frequent and they are much more violent," notes Plus Property's CEO Maytha Chanchamcharat.

"Our contractors also tell us that more provisions are now needed to meet the new level of freak storms and flooding."

To be sure, the degree to which builders address these changes in climate will finally determine how safe these homes will be for buyers.

Plus is keen to maintain its position as a top builder of middle-income housing. It is quickly moving to beef up its specifications to deal with harsher weather changes.

"To meet high standards, we need to spend on adequate facilities in drainage and in protection for the homes," Maytha says. While profit margins will be squeezed, the firm knows it is critical not to forget its obligations as a responsible builder.

In addition to wide swings in temperatures and precipitation brought on by excessive burning of carbon fuels by the city's chronic traffic disorders, Maytha says there is growing concern about pollution and high noise levels all over town.

This is one reason why the company's town houses and condominiums, which are tailored for young urban professionals, are selling so well.

The more educated buyers are more inclined to buy units that save them time and money. For instance Plus's My Condo projects are popular, as they are fully furnished and can help owners do without cars.

Located near mass-transit stations, the projects allow owners to save on having to buy vehicles and paying petrol bills and parking fees, not to mention costly insurance policies. "For mid-income families, we have Citypark homes, which start from Bt3.7 million, which is considered affordable, unlike high-priced homes charged by brand firms."

Currently Plus is completing a 34-rai Citypark town-house estate at Srinakarin near Suan Luang Park.

The gated community will have 336 three-storey town homes. The project offers 170 square metres of built up area. The units are built on land plots starting from 20 square wah.

Corner units will have more land space, starting from 40 square wah.

Even with brisk sales, Maytha is cautions about over-investing.

The current market still suffers from political uncertainty, making it tough to plan too far ahead, he says.

For the next six months, however, Maytha says the market should be upbeat, as pressure grows for authorities to hold elections.

"All parties agree they need to hold an election," he says. "This is positive as it will allow the market to consolidate after a stormy period last year.

"Initially a great deal of cash will be pumped into the system to drum up support and create a climate of optimism in order to earn votes.

"This should last six months, as any new government is usually given a honeymoon period.

"The crucial period comes six month later, when the new government is asked to demonstrate its capabilities in handling difficult situations."

Maytha is weighing all possible scenarios. At the same time, he remains careful in the wake of the huge supply of new housing flooding the market.

Land prices in the suburbs have also climbed so high it is risky to invest in new projects.

Maytha oversees more than 24 projects, evenly split between town houses and condominiums.

His sales target for this year is about Bt4.5 billion and the firm has thus far obtained Bt2.9 billion in bookings.

While he admits the next four months will not be easy, he says the firm should meet its target, as buyers are comfortable with its reputation as a responsible builder.

Itthi C Tan

The Nation