Owners must trade off risks when choosing to cut operating costs
Higher wages and insurance premiums are straining operating budgets, but simply slashing expenditures may not be the right response
It seems all property expenses have been increasing on an annual basis. This is backed up by Thailand's consumer price index (CPI), which has grown by a cumulative 35% over the past 10 years.
In the property sector, operating costs have jumped significantly over the past 12 months, largely because of the minimum wage increase and the significant boost in insurance premiums following last year's devastating floods.
As owners prepare their property operating budgets for 2013, these two major game-changers that came at the same time are presenting a challenge that needs to be addressed rationally.
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