Hello TerraBKK members and readers, the first quarter of 2023 has come to an end. Many companies have closed their first-quarter financial statements and are starting to adjust their business plans for the next nine months of the year. Meanwhile, many people planning to buy a residence in 2023 need to start thinking about what type of property to purchase and how to choose one that meets their needs and fits within a limited budget. Many readers have inquired about this, so I have brought forth "3 Tips for Choosing a Residence" for both condominiums and houses that cater to living and investment needs, focusing on the benefits and requirements of buyers amidst a fluctuating economy, rising interest rates, and stricter lending policies from financial institutions.

Let's start with:

1. Choosing a Location with Potential

I have spoken with many real estate executives and buyers about the three key factors in deciding to purchase land for residential projects and what is crucial in deciding to buy a residence. Everyone agrees that it's "Location, Location, and Location". Therefore, "Location" is the heart of choosing land and purchasing projects.

When discussing location, many people often think of areas near the subway for condominiums and areas adjacent to major roads or expressways for residential projects. The closer to the subway or major roads, the better. However, the closer they are, the higher the land and property prices, making it difficult for buyers with limited purchasing power.

So, I thought, if we want to develop a project in a convenient location at an Affordable Price, does it have to be right next to the subway or major roads?

Instead, we could consider locations in neighborhoods close to the subway or major roads within a distance of no more than 3 kilometers. According to a study by “Lumpini Wisdom and Solutions (LWS)”, locations that are further from the subway or major roads, or situated in alleys within a 3-kilometer radius, can result in residential prices that are at least 30% lower than projects directly adjacent to the subway or major roads.

This concept allows real estate developers to purchase land at lower prices, reducing the development costs compared to projects located next to the subway or major roads. At the same time, buyers can purchase residences at a more affordable price in a potential location, compensating for the convenience of transportation with shuttle bus services.

According to LWS's study, over 40% of residents expressed a desire to use internal shuttle services within the project, which is a factor in their decision to purchase a residence. Additionally, choosing residences in locations with public shuttle services enhances convenience while allowing buyers to purchase properties at lower prices. Nowadays, traveling has become more convenient with online platforms that facilitate transportation, such as Grab, Line Man, Muvmi, etc., which cover all areas, making it easier to connect with subway travel.

Therefore, choosing a location that is not far from the subway but has ample amenities, along with lower property prices, is the first tip I recommend for real estate developers and homebuyers. Why pay more when there are cheaper alternatives that lighten the financial burden for both buyers and developers?

2. Choose Projects with Amenities That Meet Living Needs

According to LWS's survey on the amenities desired by homebuyers, especially for condominiums, it was found that:

1. Condominium projects should have common areas that cater to all lifestyles, including work, health, and environment, such as fitness rooms, swimming pools, co-working spaces, gardens, and green areas.

2. The project should offer services through an application that is easily accessible.

3. The project should have various automated kiosks available 24 hours, such as beverage vending machines, convenience goods, laundry machines, etc.

Additionally, the survey revealed that besides the amenities within the project, homebuyers also value the surrounding amenities within a 3-5 kilometer radius, including convenience stores, restaurants, shopping malls, workplaces, educational institutions, and hospitals.

Given the behaviors and needs of homebuyers, this is a crucial challenge for real estate development companies to design projects that meet buyers' needs. Simultaneously, buyers should have a shortlist of the amenities they desire when selecting a residence, as all amenities included in the project represent a "Cost" that developers factor into the property price, including monthly expenses for common area fees that buyers must pay after purchasing the project.

The shortlist I recommend for homebuyers should focus on analyzing their lifestyle preferences, such as whether they enjoy exercising, what type of exercise they prefer, if they like being in gardens, if they prefer working in co-working spaces, or if they need space for hosting events, etc. This understanding will help determine how beneficial the amenities in each project are, allowing buyers to choose projects that best meet their needs, ultimately saving costs and leaving extra funds for emergencies.

3. Choose Projects Based on Functional Use That Best Meets Our Lifestyle

Once the desired location and suitable environment are established, the most important consideration for buyers of residential projects is the size and functionality of the living space, whether in a condominium or a house, which must cater to the buyer's lifestyle. Each person has a different lifestyle, and purchasing a unit or house is not a fashion statement that everyone must follow; it is about the unique functionality that meets individual needs.

Generally, real estate companies develop both condominiums and houses by designing functionalities that meet basic needs, such as living rooms, bedrooms, bathrooms, and kitchens, which are the main functions of residences. In addition to these basic functions, developers often design additional functionalities based on the target group's requirements, and many projects have adapted living areas into multifunctional spaces for easier usage adjustments, including entertainment rooms, private fitness areas, and more, to cater to diverse buyer needs.

I recommend that homebuyers, whether purchasing a unit or a house, assess their own needs to select a residence that best meets their functional requirements. Since a unit or house is a space where we will spend the most time, it is essential to choose one that is suitable for ourselves and our family members. This is another crucial tip for homebuyers to consider in order to find a residence that meets their needs.

Purchasing a residence, whether a condominium or a house, is often the largest asset in a person's life, whether for personal use or investment. The three tips for choosing a residence—location, amenities, and house design—are recommendations I provide for both real estate developers and homebuyers to adapt to their business and personal needs. This will allow them to become real estate developers who create new waters (Blue Ocean) in developing projects that stand out from competitors in the market. At the same time, homebuyers can utilize these insights to make informed purchases, becoming smart buyers who select residences in convenient locations with amenities and designs that meet their needs at reasonable prices.

Successful real estate operators and buyers who find projects that meet their needs must change their mindset about project development and purchasing. They should not follow the leaders but instead be game changers, selling what is different and meets buyers' needs, and being buyers who purchase what they desire to create their own uniqueness. As Richard Branson, the British entrepreneur who owns over 360 businesses in the UK and Europe under the “Virgin” brand, once said, "The best way to win the game is to change the game" (Game Changer).

I hope this article inspires real estate developers and buyers to become "Game Changers" and create something new for the real estate industry by utilizing the three tips for choosing residences that meet living and investment needs. See you again in May. Goodbye!

By Mr. Prabhan Sak Raksaiwan
Managing Director
Lumpini Wisdom and Solutions Co., Ltd.