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Developers prepare big sales drive

Economy and violence fuel fears of falling buyer interest Developers are planning another round of marketing campaigns to boost their sales following gloomy economic news and renewed political turmoil this month. Presales appear to have continued at the buoyant levels of the first quarter, but property firms have been alarmed by this month's dour economic predictions and political violence, fearing they will sting the hypersensitive feelings of home-buyers and the sales run will end. Asian Property Development's senior vice president Visanu Suchartlumpong said his company felt compelled to launch more marketing campaigns to help its presales reach the company's target of Bt8 billion in 2009. Presales in the week between April 6 and April 12, were apparently unaffected by the political turmoil, continuing at a high level and reaching a total of Bt110 million. However, there were fears of a market backlash when, in the wake of the turmoil, Finance Minister Korn Chatikavanij said the violence had severely affected investors' confidence and as a result, the economy could contract this year by 4.5 to 5 per cent and unemployment could reach two million people. As a result Asian Property Development has begun planning more aggressive sales campaigns to counter an expected reduction in purchasing power. The marketing tools will include price discounting and offering free furniture and home appliances. "We will launch different marketing campaigns to match customer demand, which will be different by location. Our customers in some locations, such as Srinakarin road and Onnuj, will be offered discount prices, rather than free furniture or home appliances. Other locations, such as Chidlom, don't need free furniture or home appliances, but they need guarantees of returns on investment when they buy properties and offer them for rent," he said. He added the company would conduct surveys and research what its customers wanted before launching its marketing campaigns. Supalai's director and deputy managing director Atip Bichanond said his company continued to maintain 12 residential projects around the country. It has cut new-project launches in Bangkok and expanded new projects in the provinces to help manage its business risks arising from the global financial crisis and the country's political turmoil, he said. Supalai has also launched aggressive marketing campaigns from location to location, depending on its customers' behaviour. "We believe that this is a time to spend a bigger marketing budget to maintain our sales to meet the target of Bt10 billion this year," he said. Meanwhile, international property agency Knight Frank Charter (Thailand), which recently postponed its home show, Taste of Living, which was to have opened tomorrow, plans to begin campaigning aggressively for sales. The home show was to be staged at Siam Paragon, starting tomorrow and running to May 3. It will now be held in October, managing director Phanom Kanjanathiemthao said. He said the company had been expecting sales of between Bt800 million and Bt900 million from the event, and it was now planning alternative means of boosting sales in the second quarter.

 

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