Urban workers flock to buy condos as living conditions deteriorate.
How much smaller can small condos go? In the housing market of late, a number of developers have designed units that are 20-30 per cent smaller than standard types, in a sanguine bid to lower costs and prices while maintaining profit margins.
The usual 30-square-metre studio is now 24 square metres at many projects, shrinking 20 per cent from a year ago.
To seal the sale, developers are throwing in free furniture. Some provide everything, from beds and television sets to refrigerators.
Prices start from about Bt1 million, which may sound like a steal, considering that just one year ago, few builders offered units below Bt3 million.
So what's the catch?
Indeed, the immediate reaction from veteran buyers is: "If it sounds too good to be true, it probably is too good to be true."
But the fact is there is no catch, except that these are not meant to be permanent homes. These small units are expected to be used as temporary shelters while working in the city on weekdays.
The units are handy in that they allow buyers to avoid enormous stress that comes with daily commuting, sometimes several hours from the suburbs.
A million baht to escape the constant nightmare of driving in clogged-up, unmoving traffic and falling sick from exhaustion is a small price to pay.
Even the monthly maintenance fee is a fair trade-off for the agony of inhaling toxic fumes on the Expressway and coping with reckless bus drivers and intoxicated truckers.
To be sure, Bangkok ranks closer on the lower mid-range of global cities, far from the top-20 ranking. And its problems are expanding.
The past decade has seen a sharp plunge in living standards as poor town planning takes its toll on city folk.
One British hotelier recently remarked, "Bangkok is not a place I would recommend to retirees from England. Chiang Mai or Hua Hin are more sensible places to settle down."
In the face of this wretched situation, city condominiums could be a welcome addition - if they are not too densely packed and don't make buyers more depressed than they already are.
The Aspace and My Condo sites appear to provide more recreational facilities than originally anticipated. The Environmental Impact Assessment Board has been instrumental in doing its part to ensure builders don't get away by providing the bare minimum while running away with billions of baht in profit.
If done correctly, city condominiums can help urban worker extend his or her lifespan by a decade or more through a reduction in daily stress that can kill or maim.
Doctors have recently warned about the sharp rise in cases of mental disorders and suicide, especially among city-dwellers. Government officials, elected or otherwise, must do more than pay lip service about providing more parks and reduce pollution, noise and the number of heavy vehicles on the road.
More can be done to promote a civic mind and chase unruly vendors from prime inner-city land like Sukhumvit and Silom roads.
City administrators need to review ways for city condominiums not to be a nuisance, but rather properly built housing estates that enhance the quality of life for Bangkokians.
They should not be allowed to be built near unsuitable places such as the mouth of expressway entrances and exits.
One buyer who bought a unit near his work place says, "You need not buy a brand new condo, just a place that is preferably within walking distance to your office. Failing that, a condo that is connected to the BTS or subway should be considered.
But conditions on the Skytrain have become tedious. Overcrowding and inadequate capacity, not to mention the intrusion of noisy advertising aboard the cars, have diminished the worth of the once-excellent transport system.
Those who have moved near their workplace say their lives have really improved.
"I have less stress, more free time for socialising, and I don't waste precious time being stuck in traffic three hours a day," says the buyer. "In one year, I save about 750 hours, or more than 30 days, that I would otherwise have wasted sitting in traffic jams. This is not considering the hundreds of thousands of baht wasted on fuel; taxi fares are the cost of a maintaining a car. Considering these benefits, buying a city condo is justified.
The one problem, however, is that these projects are drawing a great many speculators.
Greed is never good, and people should heed the wishes of His Majesty the King, who advises us to live within our means.
But as there is no law to say one cannot hoard condos, the danger is creating a speculative bubble. Should an oversupply of units pack the market, which could happen sooner than later, these punters should not expect to be bailed out when stuck with units they cannot rent or resell.Stricter condominium regulations are needed to ward off this growing problem.
These include higher booking feees and mandatory payment of yearly maintenance fees - increase the current terms of collection from two years to, say, four years. The sinking fund could also be raised.
End-users will benefit from such rules, as the money will be locked in fixed accounts under the juristic body, requiring appointed signatures before money can be withdrawn.
In short, buyers are protected, while speculators must pay a bigger premium on their punts.
Source: The Nation
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