 
staff writer
The prices of oil and construction materials have been strengthening significantly this year, while consumers' purchasing power has waned. Although the prices of oil and steel have softened slightly over recent weeks, homebuilders are still being forced to make adjustments
Suthee Ketsiri, managing director of homebuilders Built to Built, says the fluctuation in oil and steel prices would pose a great test for homebuilders, which would define each company’s individual ability in terms of cost management skills.
 Smaller firms under pressure
During an economic slowdown, smaller companies are usually the first to be threatened with closure due to a drop in consumer confidence. Larger companies with good reputations and better portfolios tend to get the opportunity to expand their market share. Buyers with sufficient funds tend to prefer to sign contracts with large companies during an economic slowdown since they seem more confident that larger homebuilders will charge the buyer for the original cost of the materials used during construction.
Suthee suggests that the recent easing in the prices of oil and steel could produce a positive psychological effect among consumers, leading to a more positive situation in the market. Nevertheless, construction forms would still need to monitor the situation carefully on a day-to-day basis, he said. He said it would be hard for homebuilders to reduce their prices in line with the decrease in costs, however, although there may be the chance to create promotional opportunities to increase interest among consumers. During the latter part of the year, the company plans to introduce 24 new house models in styles defined as ‘Modern Tropical’, ‘Modern Contemporary’, and 'Modern Oriental', he said.
Phanthep Thanchidkul, managing director of Maker Home, agrees that well-prepared buyers would quickly decide whether or not to build during an economic slowdown. They would be concerned, however, whether or not they are paying over the odds for construction materials. However, he says he believes there won’t be a rapid drop in the cost of materials since such sharp fluctuations have been less prevalent than the oil sector, for example, has experienced over recent months.
 Maker Home plans to launch a new tailor-made home design option called The Solution. The highly-flexible design would allow consumers to make adjustments both in terms of functionality and the size requirements. Buyers get their dream home at a manageable price.
Top end making gains
The higher end of the market is probably the only segment making gains within the homebuilding sector since wealthier buyers feel few effects from the current economic environment.
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Home design company Windmill Architect, which is part of Ananda Development, are out to attract people looking to build a home on existing land. The company plans to promote this idea through a marketing campaign under the Metro Lifestyle Living Mode concept.
This company also offers a seven-story home that can accommodate four families, as well as what it calls a ‘Cluster House’ concept – these include three, detached homes, a swimming pool, and a garden in the same compound. These kinds of homes are priced for wealthier clients, costing between 20-40 million baht (US$586,100-1,172,200). 
Suratchai Kunghakij, managing director of luxury homebuilder The Emperor House, says the company will introduce six new home designs under the brand Emperor X. Homes in this bracket cost between 15-45 million baht and are in contemporary classic and neo-classic styles. Customers get the opportunity to share their ideas during the design phase, Suratchai pointed out. – Translated into English and republished with the kind permission of Manager Online.
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