As we approach the New Year of 2022, the Master’s program in Real Estate Development Innovation at the Faculty of Architecture and Planning, Thammasat University, wishes to invoke the blessings of the Triple Gem and all sacred beings around the world. May they bestow happiness, prosperity, fulfillment of desires, and good health upon the readers and users of TerraBkk.com and the TerraBkk.com team. We hope this New Year will be better than the last. Additionally, we would like to express our gratitude to Mr. Pornarits Chuanchaisit, the former president of the Thai Real Estate Association, who has completed his term and has supported the Thai real estate industry for the past eight years. We also congratulate Mr. Meesak Khunharakchoti, the new president of the Thai Real Estate Association.

I would like to present this article as a New Year’s gift to everyone, especially those interested in academia and the real estate development profession in Thailand. This article is part of my research, which includes interviews with several real estate developers. It is titled "Tips for Real Estate Developers in Thailand" and covers several key points of interest:

  1. Our real estate projects do not need to be outstanding or number one in the industry or stock market. Maintaining our standards as developers is sufficient, as it is harder to stay at the top than to reach it.
  2. In our real estate development, the surrounding community is actually a stakeholder or partner. As we develop our projects, the surrounding community should not suffer economically or in terms of quality of life. For example, if we develop a golf course on land previously used for fruit orchards or rice fields, the original landowners should retain their rights to stay and can continue to farm alongside the golf course.
  3. Our product buyers are not just customers; they are business partners. If buyers can survive in this economic climate, so can we. If they cannot, we cannot either.
  4. Developers should not monopolize or dominate every sector of the real estate business. For instance, if we specialize in affordable horizontal residential projects, we should leave space for competitors. If competitors can survive, so can we, as they help drive us to improve our offerings and services to meet buyers' needs.
  5. Partnering or joint ventures with landowners, contractors, or even suppliers is an interesting strategy for real estate development during economic downturns. This approach spreads risk and responsibility among partners, creating a win-win situation for all involved.
  6. Developers should not compete in markets where they lack expertise. If we are accustomed to developing suburban housing projects, we should not jump into high-end urban condominium projects without a solid understanding of that market.
  7. The cost of maintaining a customer base is more important than the cost of acquiring new customers. Word of mouth is crucial; if we cannot retain one customer, we risk losing our entire customer base. Positive customer feedback is more influential than any media or social media communication.
  8. To reduce investment risk in any project (not limited to real estate development), consider that the ratio of assets to investment should be at least 5:1. For example, if a housing project costs 200 million baht, the developer should have assets or cash of at least that amount.
  9. If a developer is borrowing money from financial institutions, they should ensure that their equity is at least twice their debt, or maintain a debt-to-equity ratio of 0.5 or lower to mitigate risk in case of investment failure.
  10. Developers should be aware of competitors and external risk factors (STEEP: Social, Technology, Economic, Environment, Political) but should not waste resources trying to control these external factors. Instead, they should focus on managing their internal operations effectively.
  11. In the competitive real estate business, developers can win or lose. When winning, use it as a case study; when losing, analyze the factors that led to the loss.
  12. Developers should nurture their employees better than their own children, but give their children more challenging tasks, as they will be the ones to carry on the business in the future.
  13. Stay updated with the law and comply with it, as it is unavoidable. Engaging in corruption to expedite processes is not right and can have long-term negative consequences.

The 13 key points mentioned above primarily reflect the philosophy of conducting business in the real estate sector. They represent the wisdom of Thai real estate developers, both large and small, that I have gathered through interviews. Readers may need to apply their judgment while reading this article. Initially, some points may seem difficult to understand and may require consideration of the reader's project context. However, upon closer observation, it becomes clear that these points are based on the principles of "Sufficiency Economy" as taught by His Majesty King Bhumibol Adulyadej (sufficiency, reasonableness, and resilience).