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Published on August 24, 2007

Selling houses these days is not simply a matter of developing property projects and waiting around for buyers. Amid the current tough times, developers are increasingly applying marketing strategies reminiscent of the retail sector, and from a buyer's point of view, the sales campaigns are becoming more and more attractive.

Consumer confidence has been shaken by the now-familiar collection of negative factors, among them political turmoil and economic slowdown, and it seems certain that the real-estate market will continue to be sluggish for the remainder of the year.

Many property developers have pinned their hopes on consumers in the middle- to low-income groups, representing the largest segment of the Thai purchasing public. But they still have to work hard at sales because consumer sentiment has changed, and potential buyers are playing a "wait and see" game.

The latest marketing strategies require two main elements: developing properties that touch consumers' hearts, and arranging heavy promotions that offer great incentives.

There are many examples. The developer of Homeplace Rattanathibet is offering a maximum discount of Bt200,000 for buyers of houses with a price tag between Bt3.2 million and Bt5.5 million.

Quality Houses is offering free air-conditioning for customers who buy Tudor-style single houses of 82-108 square metres in its Laddarom Watcharaphon project until the end of the month.

MK Real Estate Development has developed an attractive marketing package for its Chuan Chuen Regent Ratchaphruek project, which features 41 California-style houses built on just over two hectares of land. Buyers will be given free air-conditioners worth Bt90,000 for bedrooms on the second floor, free anti-theft alarms and home automations worth Bt70,000, wallpaper for the entire house, water tanks and water pumps worth Bt23,100 and a discount on land prices of Bt2,000 for every four square metres.

Each of these houses costs Bt7.5 million and they will be finished in December.

These examples show that the real-estate market is in the process of adopting the marketing strategies of major shopping complexes, with constant efforts to stimulate demand. Increasingly heavy discounts and attractive prizes are commonplace.

The focus of the market has shifted from developers to consumers, with developers adopting an edgy watch on a constantly changing market and regularly adjusting their strategies.

There remains a problem with the high sensitivity of some target groups to economic movements. Many of them find it difficult to get housing loans, although some developers have taken into account the possible emergence of negative economic factors - and consequently higher financial risks - when evaluating land prices. Many property developers attempt to convince consumers through various strategies that asking for a housing loan is actually a simple procedure.

Land and Houses has grouped together 11 housing projects with prices starting below Bt2 million and up to Bt3.5 million for a campaign that stresses the ease of owning a home with a starting payment of only Bt50,000. Its customers can ask for 100-per-cent financing from the development group's LH Bank.

This campaign follows Land and Houses' recent "good things" promotion, which advised consumers to choose only good newly built houses with good decoration, good prices, good locations and good house numbers.

The campaign has influenced other developers of both low- and high-rise properties, partly because it resulted in a good second-quarter performance for Land and Houses. The number of visitors to the company's sites has risen from 10,000 in the first quarter of this year to 14,000 in the second quarter.

Meanwhile, Noble Development expects to sell 80 per cent of units in its Noble Solo condominium in Soi Thonglor after launching a marketing campaign offering a maximum discount per unit of Bt500,000. Before the campaign, the company had sold only half the units in the project, which is scheduled for completion early next year.

Noble is now targeting sales of Bt2.7 billion to Bt3 billion this year. In the first six months it achieved sales of Bt900 million. Its plans to launch one more project before the end of the year - the eight-storey Noble Nano condominium - with prices starting at Bt1.88 million.

"One Price" is also a popular strategy that began in 2004 and looks like continuing. Other attractions like free occupation of a new house for a certain period, trading in an old house to developers for a discount on a new one and zero interest rates also appear likely to continue.

Numberone Housing Development, for example, is offering an "old prices" campaign for customers to turn in their old houses for new ones at the company's Blue Lagoon housing project on Bang Na-Trat Road.

Lalin Property is taking advantage of its 20th anniversary to promote the sale of 200 residential units. Until the end of the month, it will give its customers a bank deposit account holding a maximum of Bt300,000, along with other incentives that differ at each project. It expects to sell all the units within the current quarter.

Property Reporters

The Nation