SOMPORN THAPANACHAI
Bangkok House Builder Co has spun off a subsidiary, Small House Builder Co,to build small houses on plots sized as small as 25 square wah at prices between 1 million and 2 million baht a unit.
The company said it found strong demand from small-plot land owners who want homes from professional builders. This customer segment uses smaller contractors so they risk not receiving quality units or contractors leaving jobs unfinished.
Sutee Ketsiri, the company’s managing director, said a 25-square-wah plot, the smallest allowed in the market, should have a minimum width of eight metres,sufficient to build a two-storey unit to accommodate three to five people. The company already offers 15 contemporary designs of two- and three-storey units.
Bangkok House Builder used to focus on building residential units at the lower end of the price spectrum from 1 million baht.
After more than a decade in business,its pricing has moved up to 2-5 million baht.
Bangkok House Builder is a subsidiary of Built to Build Co, which from now on will cater only to customers with budgets of 5-20 million baht a unit.
The group targets total sales this year at 930 million baht: 400 million from Built to Build,350 million from Bangkok House Builder and 180 million from Small House Builder.
Mr Sutee said Small House Builder will use the back office of the parent company for lower overhead costs. The group also has its own prefabrication factory that will help control construction costs and speed up building time, even as prices of construction materials such as cement and steel are rising.
“It’s a challenge to build a two-storey house from 1 million baht, but we believe we can do it and still maintain quality.There is much potential in this segment but building companies don’t want to enter the market to compete with small contractors,” he said.
He expects the overall homebuilding business will grow by 5-10% this year to about 50 billion baht, with units priced at 1-2 million baht taking 40% of the market, followed by 30% for houses at 2-5 million baht,20% for units at 5-10 million baht, with the remainder priced above 10 million.
Local comedians perform at the launch of the Small House Builder Co. It expects to focus on houses priced between 1 million and 2 million baht.
The new company’s designs can be built on lots as small as 25 square wah.
Source:.reic.or.th
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