In face of the slowdown in the local property market, the residential developer Tararom Enterprise is being more cautious about its investment, trying to reduce risks while focusing on its current segment, says president Wasan Kiangsiri.
''Though many developers have jumped into the hot segment _ budget condominiums clinging to mass transit, we remain focused on townhouses and single houses in the middle-to high-end segments,'' he said yesterday.
Condominium development carries many risks although it can also offer higher gains. Developers need to control costs and construction periods while accelerating sales, as condominiums call for big investment, unlike townhouses and single houses that could be developed phase by phase, he said.
''As a medium-sized developer, we are under no pressure to boost growth, unlike big players. It is a good chance for the relatively less competitive medium-priced housing segment. When the market recovers, we're more ready to launch the products,'' said Mr Wasan.
He added that the company would not invest in new projects this year to reduce risks.
Instead, it would continue the development of single houses priced from 4-10 million baht and townhouses priced at around two million baht each by launching new phases of the existing projects, which cover more than 100 rai.
''By doing so, we are less affected by higher oil prices,'' he said.
The existing projects include Promenade Home Rama II, Neighbour Home Watcharapol, Parkway Chalet Ramkhamhaeng and Garden Suite: The Indy Home Ramkhamhaeng-Ring Road.
''The property cycle is now shorter and narrower than in the past. We have to monitor the fast-changing market more closely in order to be able to change our marketing plan in time. Sometimes, our plan needs to be revised monthly,'' Mr Wasan said.
The company expects the property market to pick up in the second half of the year when it plans marketing campaigns to tap the pent-up demand carried forward from the first half of the year.
''We have been active in every project site. At least, we can grab some market shares from the big players,'' he said.
Apart from the financial campaigns including discounts and waivers of transfer and mortgage fees, it also offers environmental campaigns _ offering green areas in units, water-treatment equipment, air purifiers and power-line impedance stabilisation.
''Given the current market conditions, we will revise down next month our revenue [growth] target for 2007 from 10-15% projected last year,'' he said.
''The government should stimulate consumer spending to keep the economy in shape while tax incentives would slightly stimulate home purchasing.''
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