Bangkok--12 Dec--PRdd
Built to Build, high-end house builder pointed out that there would be negative factors on business next year from the slow down in US economy that impacted export as well as positive factors from the slow-down of Chinese economy leading to the lower interest rate, oil price and fluctuation. It expects a positive business outlook amidst stronger competition. It will surely be a positive year for consumers and right time for residential investment.
Sutee Ketsiri, Managing Director of Built to Build Company Limited, the leader of high quality house building business said regarding the home building business outlook in 2007 that the business would remain at the same level as in 2006 with insignificant growth due to various negative factors including fluctuation, oil prices, higher interest rate as well as the internal political situation. These factors had an obvious impact on the business during the past 9 months that led to the decrease in residential purchase power.
Sutee said that although during the last quarter of this year, there might be a positive sign from the decrease in oil price that led to the lower fluctuation and interest rate. Nevertheless, we still have to keep watch on the negative factors from the slow down in US economy next year. As a consequence, it would lead to the dollar devalue that would affect the Thai exporters in term of production as Thailand depends on its export to the U.S.A. up to 70%.
On the other hand, there would also be the positive factors from the slow-down in Chinese economy from its export to the USA. The oil consumption in China are forecasted to decrease resulted in the reduction of oil price in the world market next year. Such case would help lower the interest and fluctuation rate in Thailand. Taking the government announcement on its mega projects next year, it would benefit the consumers’ confidence next year as well.
“Although many institutes are warning about the US economy situation next year, in our opinion, it might have an impact the Thai export industry but not much on the working generation lifestyle. We believe that the house building business will continue to grow at a slower pace as the demand for houses as one of the necessities is still there. The consumer decision will base mainly on budget. The houses within the medium price range will gain a better response” said Sutee.
He added that the competition among house builders next year will be more vigorous in order to gain more market shares especially in term of quality and service to maintain the consumers’ confidence. Considering various positive factors including oil price, fluctuation rate, lower interest rate and the unchanged house cost, we believe that it would be a good opportunity and advantageous next year for the consumers who are thinking of owning a house.
Sutee said that despite many negative factors, the company posted similar revenue to 2006 or about 250 million baht as its customers were not impacted by such economy situation. In addition, they have no problem with their credit application from the financial institutes as they already owned the lands.
For the business plan next year, the company plans to launch new house design in the range of 3-4 million baht to expand its customer base to cover the medium-end market. Normally, the company offers the house building services within the range of 4-5 million baht., Moreover the company will have a promotion campaign to build a house in one price at 11,000 baht per square metres with 8 types of popular house and limit to 20 units from now until end of February 2007. Normally, the construction cost is around 13,000 baht per square metres. It will also have ongoing marketing activities including advertising, public relations and participating in the related public exhibition and trade fairs. The company projected the revenue of 300 million baht next year accounted for about 15% growth.
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PRdd , PR Consultant
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