Thailand Should Take Advantage from the Projects

In this age of globalization, the partition between East and West appears to have become hazy. However things are still done in a different way in the two halves of the world, and this definitely applies to property growth. In the UK, for example, some perceptions unknown to Thailand's market could be very welcome.

For example, says Joel Feldman, managing director of Akando Co Ltd, why shouldn't developers be grateful to make their projects promote the wider society?

Akando is constructing 275 out of 700 flats at FP Condominium in Lat Phrao Soi 48 for the UK-based Lizmans Property Fund. And, in spite of the disagreement with his own financial interest, he would prefer to observe such developments adding significance to their cities.

"Honestly, that is what the administration should make certain. It shouldn't be about trying to satisfy developers and to let them make their earnings. If they can't make their earnings then they don't do it,'' he says.

In London a developer cannot get planning permission for any project over 14 units without a transaction in social housing for key workers like firefighters, police officers, schoolteachers and nurses. For the reason that workers in these professions cannot have enough money for the city's property prices, the British government has gratified developers to participate in a subsidized scheme.

''The key worker is permitted to pay money for a shared ownership with the government having 50% of it. It's a lower price although it's still done to the necessary quality and conditions,'' he says.

Mr Feldman also sees a useful comparison with the UK in the advancement of the Thames and the Chao Phraya rivers. ''If you stare at the Docklands, South Bank and all the way up the [Thames] river this time they have made an astonishing renewal,'' he says.

Unsurprisingly, Mr Feldman is also eager on protecting old buildings. In his outlook, preservation orders should be extended to take in the modest buildings that uphold Thai traditions. Mr Feldman adds that he sees no cause why buildings in Thailand should be estimated to last only 15-20 years.

How to Retain a Property's Value in Thailand

In Thailand, the variation between the value of an old property and that of a new one is massive.

In the case of high-end condominiums, older units are usually sold for value less than Bt80,000 per square meter, whereas units at recently launched projects are priced between Bt120,000 - Bt150,000 per square metre, or higher. In spite of the higher costs, home-buyers still choose new units over older ones. From where does this massive difference in costs happen?

One reason is that the plan of latest projects is normally improved than the older ones. Although the most important and repeatedly ignored factor is the maintenance of a property.

Lack of appropriate and regular maintenance can make a building age and lose value rapidly. Maintenance comprises of both day by day and periodic upkeep of a building like servicing of appliances, wiring, pest control, gardening and so on.

You have to take a lot of care while carrying out maintenance work. For instance, using the inappropriate type of cleaner on wood or stone floors can make them stained or even destroy them.

Redecoration of lobbies and common areas, and landscaping should be done in every 7 - 10 years. Maintenance and redecoration work must also be carried out within a unit. That will help you to sell or rent your apartment at a good price.

Recently, luxury condominiums managed by hotel operators received strong sales data regardless of the higher costs as buyers are ready to pay a premium for convenience. Consumers are looking forward to high service-and-management standards that can maintain the value of their properties in the long term.

Currently, common-area fees in high-end condominiums are approximately Bt40 - Bt50 per square metre. The revised Condominium Act clearly describes the common area and the tasks of the juristic person. The resale value of older units should not be lower than the costs of new condominiums. A good illustration is Somkid Gardens, which is nearly 15 years old however is still believed to be among the finest properties and fetches value at par with several new luxury properties.