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HOME BUILDER

Builders expected to maintain prices despite cheaper raw materials

By The Nation
Published on August 14, 2008

Although constructionmaterial prices are likely to drop by between 3 and 5 per cent in the second half of the year, homebuilders are expected to maintain the current prices of their homes.

Many builders increased the cost of their housing by up to 10 per cent in the first half, compared with the same period last year.

Built To Build managing director Suthee Ketsiri said the company would not cut its housing prices despite signs of construction mate¬rials becoming cheaper, especially steel and oil. However, the company will offer a special promotional dis¬count of 5 per cent for customers who sign contracts by the end of the year.

The company believes that no companies in the business will open¬ly cut their prices, as this would have a bad psychological effect on cus¬tomers who have already signed up at the current levels. However, Suthee said many builders would instead offer special promotional packages from time to time.

Built To Build has adjusted its housing prices twice since November, by 5 per cent in December and by the same amount in July.

Its prices have increased in the period from an average of Bt10,000 per square metre to Bt11,000 for homes of its subsidiary Bangkok House Builder, and from Bt14,500 per square metre to Bt16,000Bt17,000 for its own models.

The company expects revenue of Bt550 million this year after record¬ing sales of Bt300 million in the first half - Bt160 million from Built to Build and the rest from Bangkok House Builder.

The company is offering 5percent discounts and introducing its latest designs at Home Builder 2008, which runs from August 2024 at the Queen Sirikit National Convention Centre.

Meanwhile, Windmill Architect, a homebuilder unit of Ananda Development, has launched the "Four New Lifestyles" concept hous¬ing, which comprises 20 new "Metro" designs in Bangkok. The move is expected to enable the builder to deliver Bt200 million in revenue this year, as targeted.

The company recorded sales of Bt90 million in the first seven months of the year.

Managing director Somsak Rochdrongkul said the 20 new designs in the "The Metro Lifestyle Living Mode" were each priced from Bt6 million to Bt50 million.

Windmill Architect also plans to develop its potential in property development - condominiums, hotels and resorts - as well as posi¬tion itself as a development services provider. The company has two proj¬ects up and running.

It has also succeeded in reorgan¬ising under the "Six Star Luxury Services" concept, which aims to make the company a business capa¬ble of providing the highest level of service and responding to every dimension of newgeneration lifestyles, in order to achieve sus¬tainable growth in the property business segment.

Meanwhile, the company will offer a special package at Home Builder 2008 for those who sign a homeconstruction contract under the Four New Lifestyles concept, as well as many other promotions for Metro Lifestyle Living Mode fami¬lies.

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Builders expected to maintain prices despite cheaper raw materials

Although constructionmaterial prices are likely to drop by between 3 and 5 per cent in the second half of the year, homebuilders are expected to maintain the current prices of their homes.

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