13 Dec2016
PD HOUSE: FLOOD OBSTRUCTS HOME BUILDER,DEC.16
PD House thinks that flood in the south effected economy and home builder market and accepted that the total sale amount didn’t reach 1,200 baht target. Cost control and product redesign helps reduce cost and house price 7% and aim to get market share of the 1.5-3 million baht house. Economic condition in 2016 is not good for extending more offices. Hope next year the economy still remains the same as this year.
Mr.Pisan Thammawiset, vice president PD House Corporation Co., Ltd or PD House Home Builder Center disclosed that the heavily rain in 14 provinces in the south caused flood which causing troubles to a lot of people. Roads both in urban and rural areas were damaged, the transportation and commutation was blocked >This effected the whole economy in the south by the end of this year.
For the home builder market and total sale amount of the company, it recovered in the past 10 years compared with other regions of the country which declined or poised. The main reason is the customers in the south pay more attention on quality, service and accountability of the entrepreneur than the price so the competition is not so high. By the end of the year, the purchasing power of the consumers on residential purpose declined. Furthermore the flood which is being occurred in the south will also caused the slow decrease of the sale amount in the south which will cause the total sale amount of the company all over the country goes below the 1.2 baht billion target.
“Our strategies to cope with economic condition in the final quarter of the year is to control operation cost such as slow down extending new offices, close nearby office or low sale amount office and present house design via application instead of brochures and printed matter. Furthermore, re-product also help reduce construction cost. The company also introduce steel house which can be constructed more quickly and can reduce construction cost 3-7%, the average construction cost is about 15,000 baht/sq.m./.This provides more opportunities of the company to penetrate to the target group especially the 1.5-3 million baht house which is the most needed and 3-5 million baht house, the second needed of the customers. Both adds up to 60%of total amount of home builder market.”
Mr. Pisan also added that this year the company plans to open 1-2 more offices but the economy in upcountry is not recover as expected so the opening new offices are slowed down because the company doesn’t want to take high risk. For next year plan, we will wait to see global economy trend which direction it will go. Personally he thinks it still remains the same.”