Fuel pinches, but suburbs still draw buyers

Despite rising petrol prices, which make commuting to the city expensive, many middle-class families are still going in for suburban homes, says developer Mana Jiranapakul.

"If they can afford it, middle-market buyers prefer living far from the inner city, which is very polluted, crowded and noisy. They're prepared to pay more for petrol to drive to work and back. They want healthy living conditions not only for themselves, but also for their children," said Mana, who is head of the Normboom Group.

With the success of his first housing estate on Srinakarin Road, Le Nakarin, Mana plans to embark on a much bigger phase of suburban developments.

"Although there are worries about inflation, high petrol prices doubling from last year and political unrest, the real demand for housing has continued to record strong growth," he said. "Developers offering good products at affordable prices will do much better in this tough climate."

There are only a few units left for sale at Le Nakarin, a project spread over 16 rai and offering 67 single-detached homes.

"One reason suburban units continue to do well despite the higher cost of commuting is that middle-market buyers can adjust better to higher fuel costs than can low-income buyers," he said.

With average annual growth of 5 per cent recorded in the Kingdom in the past few years, the middle-class market has continued to expand steadily.

"Today, it is not uncommon to find middle-class households with monthly incomes of Bt60,000 to Bt100,000 a month. This group can certainly afford to live outside of the squalor of the inner city."

The company has a land bank of about 90 rai near Le Nakarin, which is located beyond the Thepharak Intersection on Srinakarin Road, Mana said. The estate is only a few metres from the Kanchanaphisek flyover. While many housing projects are located deep inside small sois, Normboon's projects are only 200 metres from the main road and a short drive from the exit of the newly opened Southern Ring Road.

But the key to Mana's success is the improved home designs.

"To compete, we must provide the same facilities as our competitors. But really to succeed, we have to provide better and bigger homes at a cheaper price," he said.

Le Nakarin was launched after the infrastructure development and landscaping was completed. One of the signatures of Mana's homes is their spaciousness and well-lit and airy ambience. The houses have been built on plots of 52-130 square wah, with use areas ranging from 176-280 square metres.

Three fully fitted sample homes have been completed. Prices start at Bt4.7 million.

Construction on half of the houses is under way. They are expected to be ready for delivery in less than six months, and Mana expects their transfer to be completed by next year's first quarter.

While Normboon does not provide furniture or kitchens, its promotional package includes air-conditioners for the bedrooms. The project also offers a swimming pool and clubhouse.

He hopes the linking of the new Southern Ring Road and the Industrial Ring Road, as well as the future Skytrain route, will make the area popular with those who have offices on Rama III, Silom, Sathorn and Sukhumvit roads.

"Once the link is established, commuting to the central business district will take only a few minutes," he said.

      At a glance

n The Normboon Group has developed Le Nakarin housing estate on Srinakarin Road.

n The houses are built on plots of 52-130 square wah, with use areas ranging from 176-280 square metres.

n Prices of the units, which will likely be ready for delivery in less than six months, start at Bt4.7 million.