The Bangkok floods have caused developers and property firms to re-evaluate their strategies for next year. The floods affected 300,000 homes in Bangkok and the surrounding areas.
Many developers believe the City Planning Department of the Bangkok Metropolitan Administration (BMA) must include proper floodways in residential areas in the new plans.
Property firms have learnt from the floods and they are revising their construction processes, designing homes which can withstand floods and spending more on landfill to raise houses above flood level.
The increased use of landfill in flood hit areas will raise construction costs by 1.5 per cent for detached houses and 3 per cent for townhouses.
Pruksa Real Estate have lowered their projected revenue target for this year from THB30 billion (US$960 million) to between THB22 billion (US$704 million) and THB24 billion (US$768 million) according to The Nation.
Business Housing Association president Issara Boonyoung, who owns Kanda Group, agreed that the BMA had to take flood prevention into account before releasing the new plans.
“This is not only for property firms to manage their residential projects. This is necessary for home-buyers to know which locations are safe from floods,” he said.
According to REIC figures, the Greater Bangkok property market will drop by 10 to 20 per cent this year because of the floods.
The number of new condominiums in Greater Bangkok will be 24 to 31 per cent lower this year compared to last year, from 66,000 units in 2010 to 45,000-50,000 units in 2011.
The number of new low-rise detached houses, duplexes and townhouse will drop by 7 to 16 per cent from 54,000 units last year to 45,000 to 50,000 this year.
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