Housing Project Management before Establishing a Legal Entity: Case Study of Housing Projects in Bangkok Metropolis and Vicinity

Abstract

The housing project is a result of residential development, involving the allocation of land for building houses or townhouses and the construction of utilities to facilitate living. There is a clear boundary of the project, both legally and physically. Housing projects differ in terms of project size, house types, market share (segment), common areas, and common fee collection rates. Therefore, the management of housing projects varies accordingly. This article aims to study the physical components of public utilities and the expenses incurred within the housing project (before establishing a legal entity) by collecting information from documents, surveys, photographs, observations, and interviews, followed by a comparative analysis. This will lead to suggestions and guidelines for managing housing projects before and after establishing a juristic person.

The study found that the 18 projects examined offer 16 types of common facilities, which are basic features required in every project. These facilities include entrances and exits, guard rooms, project fences, ornamental plants, project signboards, parking spaces, green spaces, common gardens, streets, walkways, lighting, electrical systems, water supply systems, water drainage systems, water treatment systems, and security systems. The other 9 items are considered secondary utilities because not all projects provide them. These include entrance arch structures, entrance arches, clubhouses, fitness rooms, swimming pools, sports fields, playgrounds, fountains, and ponds.

Furthermore, it was found that in 15 out of 18 projects, income was determined to be unbalanced with expenses. In these cases, income was lower than expenses by -0.92 to -59.04% (representing 0.47-186.23 baht per square wa). In the remaining 3 projects, income was balanced with expenses, with income higher than expenses by +0.08 to +7.78% (representing 0.02-2.31 baht per square wa).

Therefore, it can be concluded that there are 16 essential utilities that must be included in all types of housing projects and market segments. Other elements can be optional, depending on the type of house and market share. It was also found that market segmentation and housing project type are related to the expenses incurred within the housing project (before establishing a legal entity). Projects with higher market segmentation levels generally have higher administrative expenses compared to projects with lower market segmentation levels.