PD HOUSE Turns to 1-2 Million Baht House Market and Join The Government Housing Bank to Give Loans to Government Officers.

Real Estate Press Releases Wednesday March 11, 2009 09:13
Bangkok--11 Mar--PD HOUSE

According to economic crisis,most home builder companies foresee that the below 2.5 milion Baht house market will shrink and highly competitive due to the limited purchasing power of the customers which depends mainly on housing loans from banks or financial institutes.Meanwhile,the banks or financial institutes stricks to give housing loans to this group of customers.PD HOUSE,on the other hand,makes 2009 market plan by focusing on government and state enterprise officers.PD extends service area both in Bangkok and up-country.They said the main objective is not only making the profit but also makes the home builder business known to the customers.This will turn the consumer behavior to accept the home builder companies instead of private contractors in the long run.PD plans to launch 8 new house designs price 1-2 m.Baht and join The Government Housing Bank to give a special promotion of 7% reduction price,free charge for mortage fee,legal service and inspection fee.PD sets the total sale 150 m. Baht in the first quarter of 2009.

Khun Malee Suwannasut,vice president of Patum Design Develop Co.,Ltd.or PD HOUSE disclosed that the whole home builder market continued to shrink from the 4th quarter of 2008 till the first quarter of 2009.This makes the highly competitive market.Many entrepreneurs avoid the competition by focusing on a high price house—5 to 10m.Baht and over for they think that this group of customers receive less affect from economic crisis.Most build a house in cash,they have a high purchasing power and the price of the house is not the main factor for making decision.As a result,most of home builder companies are motivated to the high price house market and leave the 1-2m.Baht hosue market to a few home builder companies.

Cost management is an important obstacle of home builder companies.To build a house,large or small,the management cost and duration of construction are not significantly different whereas the rate of return for a larger one is higher so the market for the 1-2 m.Baht house motivated a few home builder companies because most think that it is not worthwhile.The private contractors take large part of market shares.

Khun Malee said that PD HOUSE had surveyed marketing data in more than 40 provinces in the first two months of 2009 and found that a large number of customers need houses price 1-2m.Baht but they face two important obstacles.Firstly,no reliable home builder companies build the low price house—1-2m.Baht especially up country.If they do,the transportation fee will be charged up to a hundred thousand per a house.This makes the customers turn to local contractors who can build them a house with lower price than that of home builder company.Secondly,financial institutes lay a srict condition to give housing loan.The owner of the house has to do at least 20% of the construction with his own expense before the bank give him the first installment.This put a heavy burden to the customers so they put off the construction.

From the survey , Khun Malee said,more needs for housing are found especially in the provinces around Bangkok,in the central part and in the northeast.PD grasps the opportunity by joining with The Government Housing Bank and focus on government and state enterprise officers in more than 40 provinces in the service area of the company.To involve in the 1-2 m.Baht house market,the aim is not only enlarge the sales amount but also make known the home builder business to the public.

Khun Malee also added that in the first quarter of 2009 the company launched 8 new house design price 1-2 m.Baht to provide choices to the customers to access a professional home builder company.The house design will be exposed in The 4th Khon Kaen House Fair held by Khon Kaen Immovable Property Club between March 27-29 at Convention Hall,2nd floor,Kanchanapisek Convention Center,Khon Kaen University.PD HOUSE will give special promotion with 7% reduction price and free service charges for government and state enterprise offices who apply for housing loan in March and April 2009.PD aims to get total sales 150m.Baht from 12 branches in Bangkok and up-country from the campaign.

For more information please contact
Tel.02-9960940-7 Fax 02-9960948-9
E-mail webmaster@pd.co.th     www.pd.co.th

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