Local safety standards 'need review'

Architects, engineers, construction-material producers and related businesses will have to revise their standards when the Asean Economic Community becomes effective in 2015.
Taweejit Chandrasakha, former president of the Association of Siamese Architects under Royal Patronage, said the AEC would directly affect the property sector and the businesses that cater to it, especially with safety standards for new homes.
“In the past when we built a home, we were concerned about the design, the function and the [location]. When the AEC becomes effective we will have to be concerned about the materials we use to build the home, which has to be safe,” he said.
For example, when architects select floor tiles now, they are interested only in the design. But after the AEC comes into effect, they will have to follow the standards set by the Asean Architect Council, such as those related to floor tiles’ slip resistance.
“Thai contractors, property developers, home-builders, architects and engineers will have to learn the rules and international standards when they expand into AEC member countries,” Taweejit said.
Property firms and home-building companies will have to study the rules regarding building construction in each country and be concerned about the quality of the products they use to ensure the security of the people who use their buildings.
The design and construction process will be evaluated by experts to ensure safety standards. Those companies that can develop their systems to meet the standards will be the ones that benefit from the AEC. If they do not make this investment, they will find themselves facing heavy competition not only from domestic players, but from elsewhere in Asean as well, he said.
Prasong Tharachai, former president of the Engineering Institute of Thailand, said the AEC would provide both pluses and minuses for the construction business. The most obvious benefit is that the market will be bigger than Thailand alone, but the AEC will also open up the Kingdom to foreign firms that can meet the regional standards for engineering, architecture and construction.

POTENTIAL FOR PROPERTY FIRMS
Property firms believe that the AEC will provide business opportunities for them both for expanding their investment in Asean countries and creating new demand for accommodation here, as many businesspeople from elsewhere in the region will buy second homes in Thailand.
Pruksa Real Estate chief executive officer Thongma Vijitpongpun said the firm was interested in investing in AEC countries, especially Indonesia, Malaysia and the Philippines, which have the population bases to support demand. However, the firm will wait to learn about the legal requirements for developing residential projects in each country, he said.
Land & Houses senior vice president Naporn Soonthornjitcharoen, who had experience investing in the Philippines and Indonesia more than 15 years ago, has said his company also would take time to study the legalities of regional investment after the AEC goes into effect, and base its decisions on what the challenges are.
SC Asset Corporation CEO Kree Dejchai said Thailand’s market would not suffer under the AEC because it would still be difficult for foreign developers to expand into this country. He added that the AEC would challenge local property firms to develop residential projects in Thai resort destinations as investors from Singapore, Malaysia, Brunei and elsewhere require a second home in this country. That is why SC Asset is interested in expanding investment in resort destinations, focusing on both local and foreigners’ demand.

OFFICE DEMAND GROWTH
Meanwhile, demand for office space in Bangkok will rise with the demand from international firms to set up head offices here. Those interested in expanding into AEC countries will use Thailand as a base because it has better facilities than neighbouring countries, CB Richard Ellis (Thailand) managing director Aliwasa Phathanathabutr said.
She added that Thailand’s geographical location in Asean made it easy to travel and transport goods to Myanmar, Laos, Vietnam, Malaysia and Cambodia.

HOTEL BOOM
Many foreign investors in the hospitality business are expanding into Thailand, especially tourist destinations such as Koh Samui, Phuket and Pattaya.
For example, Crystal Caliber, a wholly owned subsidiary of Malaysia-based TA Global, has invested US$90.2 million (Bt2.8 billion) to buy Moevenpick Resort & Spa Karon Beach Phuket from Kingdom Hotel Investments.
Also in Phuket, Singapore-based Lum Chang took over the 260-room Evason Phuket and Bon Island at Rawai.
Jones Lang LaSalle Hotels forecasts that the demand to buy hotels in Phuket will be valued at Bt10 billion this year as foreign investors believe that when the AEC becomes effective, Thailand will be the destination for both tourists and businesspeople.