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Metal price hikes: operators fight on
Building contractors squeezed by steel price rises
Sawittree Namwiwatsuk
Construction industry contractors are watching with apprehension the
increasing price of steel on the international markets, but say they have no
choice but to continue with their projects.
 Sanga
Kijsamrej, General Manager of SK Construction Co Ltd. and President of the Union
of Pattaya Entrepreneurs.
The Department of Internal Trade has already adjusted the prices for steel
products once this year, as the cost of the raw material has been increasing,
and is about to adjust the prices twice more.
An increase of 4 baht on the unit price of steel reinforcing rods will be
allowed this month, followed by another increase of 3 baht later in the month.
Much of the pressure on steel prices has come from China’s economic development,
which has created a huge demand on the international market and driven prices
up.
Sanga Kijsamrej, general manager of SK Construction Co Ltd and president of the
Union of Pattaya Entrepreneurs said that the unit cost of steel at the beginning
of 2007 was 23.25 baht. Currently it is 37 baht.
This is an especial worry for contractors who did not order steel in advance,
yet who have signed construction contracts. They are not able to increase their
contract payment, and they will have to bear the higher cost of construction
materials.
Those hit hardest will be contractors building high-rise projects, as
reinforcing steel rods are used in the structural concrete. With low-rise
buildings of seven stories or less, which constitute the bulk of building work
in and around Pattaya, the volume of steel rods will not be that great, and
consequently the price increase should be manageable.
Sanga said that the house building industry in Pattaya is also being hit by the
lengthy approval time involved in getting a loan from the bank for the
construction process, and that this is slowing the whole industry down. However,
the fundamentals of the market are strong because of the growing number of
foreign inhabitants and long-stay tourists.
Raimon Land awards THB550 million sub-structure contract to Bouygues-Thai
From left to right: Senior Vice
President - Global Real Estate Group,
Lehman Brothers Blake Olafson, Managing Director – Bouygues-Thai Jean
MarrieVerbrugghe, CEO Raimon Land Plc. Nigel Cornick and Lehman Brothers head of
Global Real Estate Group Southeast Asia, Charles Rubin.
Luxury residential property developer, Raimon Land, has
awarded international construction conglomerate Bouygues-Thai the sub-structure
contract for its The River condominium project on Bangkok’s Chao Phraya River at
a value of THB550 million.
Raimon Land Chief Executive Officer, Nigel J Cornick, said Bouygues-Thai won The
River’s sub-structure contract due to its proven track record for superior
construction.
Both companies worked together to develop The Lakes and The Legend projects in
Bangkok.
“Thailand’s increasingly knowledgeable property investors have never been more
demanding in their requirements for high standards in construction, and
Bouygues-Thai has consistently raised the bar in this area,” Mr. Cornick said.
Bouygues-Thai is currently constructing Raimon Land’s 376-unit Northpoint luxury
condominium project in Pattaya, in which over 250 units have already been sold.
Mid-range condominiums selling well
‘The Park’ at Jomtien Beach is due
for completion in 2009
and features 1,2 & 3 bedroom spacious condominiums
set in a lush 30 Rai of unspoiled natural beauty.
Alan Bolton Property Consultants continue to remain upbeat
about the mid-range condominium market in Pattaya.
“This is the one sector that continues to show great potential,” says proprietor
Alan Bolton. “We can confirm that we have had a string of successes over the
past months selling multiple units in ‘The Park’ at Jomtien Beach. The
association we enjoyed at their previous housing development Jomtien Park Villas
Phases 1, 2 3 & 4 prompted us to involve ourselves with ‘The Park.’”
Alan then went on to say: “These guys, as local developers know and understand
the needs of the prospective buyers. They are also aware of what the local
agents require to assist in selling the final product, i.e. quality brochures
that are regularly updated, showing current pricing (offering easy payment
terms), unit availability and clear professional floor plans.
“Even under the current political and economic climate where buyers are few and
far between, the guys at ‘The Park’ have come up with a project which appeals to
both the quality conscious and the budget minded. They have gone back to nature
in the middle of Jomtien by creating a system of lakes and tree-lined avenues
through the development. This is what makes ‘The Park’ unique in the area, it is
a coming together of very affordable (55,000 Baht per square meter), hi-tech 1,2
& 3 bedroom spacious condominiums that feature fully fitted European kitchens,
concealed air conditioning, built-in wardrobes and excellent quality bathrooms.”
‘The Park’ is the one project chosen by ABPC not just for the fantastic
showrooms and sales tools provided by the TAG Thailand team, but also the
professionalism and courtesy that is shown throughout their organization.
“I would like to take the opportunity to recommend this project to any serious
condominium buyer and to the many local agents who are currently sourcing
properties for their prospective clients,” continued Alan.
For those who do not know, ‘The Park’ is located on Thepprasit Soi 17 some 700m
from Jomtien Beach. It is currently under construction and is estimated to be
fully complete by the end of 2009. There are 4 separate buildings each having 7
stories and all set in a lush 30 Rai of unspoiled natural beauty with a
five-star restaurant, free-form infinity swimming pools, delicatessen,
coffee-shop, tennis courts, convenience store, laundry, jogging track, fitness
center exclusive for residents and ample parking.
With easy access to Jomtien Beach, taxi routes and Jomtien’s many superb
European and Thai restaurants, it makes ‘The Park’ the only place to call
‘Home.’
For further information, please do not hesitate to call ABPC on 038-416728
Horseshoe Point comes to town
Thinking of an active holiday together with your family in a wholesome
destination in Pattaya, but prefer to be away from the city crowd and busy
nightlife? … Try “Horseshoe Point.”
 Horseshoe
Point offers a unique living style with fantastic facilities for all the
family.
During May17-19, 2008, Horseshoe Point, led by Jate Sopitpongstorn, Managing
Director, will gallop into town to allow Pattaya City to get to know more
about this unique resort and property development.
Horseshoe Point is not only a world class riding school but also offers
low-rise boutique Mediterranean styled rooms which were designed to thrust
those staying there into a natural atmosphere perfectly suited for the array
of outdoor activities the resort has to offer.
Moreover, it is now your opportunity to get to know more of the 2 housing
developments of this exclusive and wholesome community: “The Residence @
Horseshoe Point” and “The Village @ Horseshoe Point.”
 Jate
Sopitpongstorn during an interview on ‘Horseshoe Point in Town’ with Tony
Malhotra for Pattaya Mail Television.
Both these developments offer the safest and most secure residential
property where you can find the best in classic living with access to all
the magnificent resort facilities. You will be surprised by the whole range
of outdoor activities on offer for you and your family set amidst this
natural garden oasis.
Meet us at “Horseshoe Point in Town” at The Avenue, Pattaya 2nd Road, from
17-19 May 2008 (10:30 am onwards) where, along with a special offer and
discount of up to 900,000-THB* on the housing projects we’ll also be holding
a lucky draw for Free rooms, Free paintball, Free pony riding, Free ticket
to Three Kingdom Theme Park and Free Spa treatments.
For more information please contact the communication team at Horseshoe
Point Pattaya on Tel. 038 253 500 or visit www.horseshoe point.com.
*Note: Discount on the property purchase is conditional upon
making a reservation on the spot during the 3-day event.
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