Condominium Development Strategies of Local Developers in Nakhonsawan City Municipality Area

Abstract

          Local developers have started to play an increasingly important role in the development of condominiums above other proficient competitors from Bangkok. This research will therefore focus on studying condominium development strategies of local developers in Nakhon Sawan municipality, which have seen an extensive increase in the past 5 years, by studying the concepts of project development, including issues, obstacles and solutions in resolving the problems. It will be conducted by interviewing 3 local developer companies, as well as surveying the actual projects, transcribing interviews, analyzing key words and their definitions, in order to reach a comprehensive conclusion.

            The results of the study revealed that, 1) All 3 local developers are from Nakhon Sawan City by birth and all are experienced developers of horizontal residential project prior to condominium project. Besides, family members have involved in development. As local developers, they have an advantage in accessing information and acknowledging the actual demand of the consumers, as well as advantages on the land cost. 2) The development strategy that is used, is to target customers from other provinces or districts to work or study in the city. It was found that the source of funds for the development would be from their own personal funds and partners without loaning a bank. All of the projects are low-rise condominium with 8 floors or less, located within the city area with the distance that motorcycles can be accessible as well as designing and selecting different materials to make uniqueness in the market affecting the selling price is different. In addition, the developers who have previous experiences in condominium development have improved the quality of their construction and focused on after-sales service and customer care because it is what customers expect and confide in the projects. 3) The developers also face issues regarding construction, especially substandard work which contribute towards the slowdown in sales. This is mitigated by hiring experts to control and supervise the work, and bringing in better quality materials to solve the scarcity of materials.

            This research demonstrates the concept of condominium development and methods of solving problems that occur of local developers which is beneficial for investors or developers who are interested in developing condominium projects in Nakhon Sawan City to be the beneficial guideline and reduce development risks that lead to success onwards.