Big demand for self-built residences

With the domestic economy expected to remain in the doldrums next year, local homebuilders are being urged to focus on construction quality and building a strong brand.

Homebuilders believe demand for selfbuilt homes will remain strong, while purchasers will be more selective.

Sutee Ketsiri, managing director of Built to Build Group, said economic prospects for 2016 were sluggish, dragged down by low exports, high household debt and low private consumption.

“Government spending on megaprojects will be a major driver next year, but a clear positive effect from them on economic growth is likely to be felt only in 2017,” he said.

“2016 will be another year of struggle for everyone.”

But Mr Sutee projects demand for selfbuilt homes will persist, although buyers will be more selective in choosing a reliable builder, one with strong brand awareness and a good reputation.

“Homebuilding is a market of brands and word-of-mouth sales rather than advertising,” he said.

“Therefore, homebuilders should minimise problems and complaints as much as possible to strengthen their brand.”

The Home Builder Association estimates the value of the self-built home market this year at 9.5 billion baht, down by 9% from last year.

Property tax incentives applied since late October have only marginally benefited this sector.

Mr Sutee said the group’s 2015 sales would amount to 780 million baht, higher than the target of 700 million set early this year and representing a 20% increase from last year.

Built to Build has 200 houses on hand. Most customers want eastern-Bangkok locations such as Bang Na-Trat Road, Sukhumvit Soi 77 (Soi On Nut) and Phra Khanong district, where the upper-end segment predominates.

“Prospective locations for self-built homes are near the Bang Sue-Bang Yai Purple Line, which will start running next year. Condominiums will crowd around its stations, while farther away will be townhouse and single-house projects,” Mr Sutee said.