In dismal times when property prices are plunging to new lows in Western markets and some Asian countries, it is worth remembering that a unique development can stand the test of time and can bring rich returns to the owners if they are able to hold on to it.

One such project is a 17-year-old condominium in Hua Hin called Ban Kaimook which was developed by Sansiri's original company Sansamran and conceived by the late US designer John Rifenberg and his Thai associates.

The struggles developers have to overcome in order to complete a project are evident at this exclusive beachfront residential building. Sansiri CEO Apichart Chutrakul said that he and his cousins were amateurs at that time but were determined to build an outstanding landmark on the one hectare plot on which their grandfather's house once stood.

"I lived there as a child and this house was really the best that there could be, we bought it 60 or 70 years ago and it was really good, I was fond of this house and we wanted to maintain this good memory."

It was for this reason that Mr Apichart and his cousins asked Mr Rifenberg to design this exclusive beach-front condominium because in those days he was one of the best designers in this country.

However even though they were only amateurs back then, they were taken aback by some of Mr Rifenberg's avant-garde design features but being naive went along with it.

The first shock was that this 12-storey, 36-unit condominium was to have a yellow facade. "In those days there weren't any yellow condominiums, at most it was blue, so we asked John: 'Please tell us, why yellow?' and John said: 'Hey Apichart, you have to understand that this has to be an everlasting landmark, it's the contrast. If it's a plain white building there will be very little contrast against the sky and sea, it will just blend in and sink, it will also get swallowed by the other buildings'."

Even more surprising was that the US designer chose to tile the whole exterior of the building with yellow mosaic rather than paint it as is customary even today. Again Mr Apichart and his cousins went along with it and approached Siam Cement for a new product the company had just launched - netted mosaic tiles that come in broad panels and are easier to affix. But as Mr Rifenberg wanted a particular shade of yellow, Siam Cement was asked to specially produce it and because the company was promoting its new product they agreed to do so.

"His design was really super, his concept was to design from inside out but the exterior also has to be outstanding if you sail from Pattaya to Hua Hin you can't mistake it, you will spot Ban Kaimook right away."

Special internal features include copper tubing throughout the building with each unit having its own water boiler which ensures a constant flow of hot water at every point. "It's like living in America, there is hot water everywhere."

To ensure total privacy this condominium has a single-load corridor meaning there are units running along one side only. The corridor and the apartment are separated with a small bridge linking the two.

Those who have lived in a condo would really appreciate these features because neighbours can be very noisy when they walk up and down these corridors.

It should not be at all surprising that the price of Ban Kaimook units have risen from 37,000 baht a square metre when the development opened more than 10 years ago to approximately 130,000 to 140,000 baht per square metre today.

"It's been this way for a long time now because those who bought units say they're unique and if they sell up where are they going to go and live? So it's that way."

While prices at Ban Kaimook are staying at a good level, Mr Apichart admitted that his company has been affected by the ongoing global downturn but pointed out that those buying property at Thailand's oldest seaside resort do so to acquire a second home and only start looking around if they have enough money to make this purchase. Developers too help their buyers with Sansiri making some of the units at its newer developments in Hua Hin a bit smaller to lower the price. In keeping with today's mood, it is one-bedroom units that are now in favour with the reverse being true when the going is good because then it is two-bedroom apartments that sell better.

As studios are never very popular in Hua Hin, Sansiri does not build many of them.

"Hua Hin is a place you go to relax and that is why I said earlier that people already know what they want, boom or bust they know what they want."

However, it's clear that the global financial crisis is taking its toll and similar to everyone else this company, while confident that there is still a market, is being cautious and is not in a hurry to launch anything new at this beach resort just yet. Mr Apichart, who survived the Asian economic meltdown in 1997, said that discipline and good financial management are very important during difficult times.

"It's back to basics, the trend to just sell, sell, sell, is not applicable anymore, it has to be basic, the way you work, the service, transfer, can't just keep selling anymore and those who only do this will die."

Sansiri's CEO expects some developers to run into problems and not complete their projects but does not think this will be a substantial total because everyone is aware of the global situation. He also appreciates the fact that banks in Thailand are now tougher on lending because otherwise this country could have plunged as deeply down as has the Western world.

"We're lucky, we've bled once already, we have been through it once and that is why there aren't that many developers in Thailand. In the old days when I first started doing this business prior to the previous crisis, there were 3,000 companies but today there are around 400 to 500 companies. And strong and capable companies only total 50 or 60."

source : www.bangkokpost.com