Kave Condo, a new low-rise condo project opposite to Bangkok University, Rangsit Campus by Asset Wise Co, will have a sky pool which is rarely found at projects by small developers.
When it comes to business, being small has its disadvantages, such as poorer access to finance, resource constraints, a lack of high-calibre staff and lower job security. Small companies are also linked to having weak business strategies and planning, on top of lower standards.
But being small also comes with strengths, such as greater customer focus, more responsiveness to market needs, highly-visible top management, less red tape, informal working environments, innovativeness, the ability to pounce on opportunities and flexibility.
And that definitely extends to the property industry.
Experts say to stay afloat, small-sized property developers should spot gaps in the market, do more market research and improve products and services amid intensifying competition where large players now dominate the market.
But it is also not a cakewalk these days -- even for large developers -- to boost sales or launch a project on account of the market slowdown, weakened by lower purchasing power and consumer confidence, high household debt, mortgage rejections and oversupply in some locations.
Lertmongkol Waravenuch, managing director of property developer Legend Property Co, says small developers should build a new segment or find areas that larger developers have ignored or are otherwise not worth their time investing in.
"Many large developers are not interested in small-scale projects. Projects sized smaller than five rai for single house or townhouse sites or those with less than 80 units for condos are unlikely to attract interest from big firms. That's where the small developers step in," he says.
While large developers mostly prefer developing projects on main roads, small firms should venture into the sois, where land costs are lower. Better situated plots are also feasible for small-scaled projects that don't capture the interest of large developers.
Mr Lertmongkol's company is currently developing The Ace, an eight-storey condo on a 183-square-wah plot on Ekamai Soi 12 with only 69 units worth 250 million baht. Launched in late 2014, it is 80% sold.
"It is not necessary [for a condo project] to cling to a mass transit station. Your project can be located on a soi but it needs to have a selling point," he says. "The selling point of my project is its proximity to an international school where demand comes from parents."
He says that small developers should differentiate their locations as not all condo buyers need a project close to a mass transit line.
Kromchet Viphanphong, managing director of Asset Wise Co, says location is the most important thing for smaller-sized firm to develop a project amid the market slowdown, where demand is limited and oversupply abounds.
"We need to analyse where strong demand is as there are many locations with too much condo supply," he says. "We should find a zone where demand and purchasing power are strong but supply is limited."
Since being established in 2013, Asset Wise has launched a total of nine projects worth more than 5 billion baht, including eight condo sites and a high-priced single house project.
All of the condo projects are low-rise buildings with eight storeys located in non-central business district locations like Lat Phrao, Saphan Mai, Ngam Wong Wan, Ram Intra, Min Buri and Ratchadaphisek.
Five of them have been completed with one being completely sold out and the other four having 5-10% of their units still up for sale.
"Our locations are in the outer city but demand is real with no speculation," says Mr Kromchet. "We don't need to develop a high-rise building, but low-rise ones with complete facilities just like those in a high-rise project."
The company's new projects being launched this year will also be in outer city locations like the Rangsit area opposite to Bangkok University, on Soi Chok Chai 4, on Lat Phrao Soi 71, as well as Saphan Mai and Ram Intra.
He says small developers should cultivate projects with the same standards employed by large developers, adding it is better to give customers more than they had expected.
"Small developers should work hard, do more market research and follow customer trends and lifestyles," says Mr Kromchet.
As a new entrant at the time, Asset Wise had touch-screen control panels and built-in speakers installed in every one of its units, despite the fact they were only priced 1.5 million baht. All of its projects also boasted digital door locks, he says.
Good after-sales services and customer care are also a must for no-name brands as they can build a reputation and bring in new buyers by word-of-mouth.
"After-sales service is a key concern for customers, particularly at projects developed by small or no-brand developers," he says. "When customers bring a problem to light after getting a unit transferred, developers should do repairs or solve their problem as soon as possible."
When a property management firm steps in after a unit transfer at a project, the company should have a customer relationship management unit to monitor it, as many cases have arisen when the developer gets blamed for a problem stemming from the management firm.
Saowapark Thanomsakkul, chief executive of S Park II Co, Ltd, a new property firm founded in December last year, says the company has seen market opportunities in the luxury single house segment on small-sized plots of land in the Srinakarin area.
Its first project will only have five units of four-storey single houses priced from 50 million baht a unit, to be located on a 517-sq-w plot near Suan Luang Rama IX Park on Soi Premiere off Srinakarin Road. Designed by renowned architectural firm A49, all the units can be customised.
"Locations near Suan Luang Rama IX Park are attractive for those seeking a single house, as it has a good environment and refreshing weather," she says. "Location is key for high-priced single houses."
The company is confident in the area, where demand is from wealthy families. This segment has no problem with bank mortgage rejections as buyers have good credit and most of them can pay in cash.
Ms Saowapark says the project has no rivals as it taps a niche market segment and is small scale, leaving it outside the purview of bigger players.
Mr Kromchet with a Kave Condo model. He says small firms must be big on standards.
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