Taiwanese-based Fragrant Property sees further potential in the Thai market, planning to invest another Bt1 billion this year to purchase a land bank for new projects in the central business district despite the slowdown in the sector.
Managing director James Duan yesterday said while the company would not rush into investment, as the overall outlook for the market was slower, it expected to see a faster recovery from the world economic crisis in Asia, starting with China and with Thailand next in line.
Fragrant Property will therefore see how the situation unfolds before starting to buy land again in the second half of the year to start new development projects. The acceleration of government budget disbursement and economic stimulus measures are likely to boost purchasing power again in the longer term, he said.
Fragrant Property has launched the Bt5-billion The Circle and The Prime 11 projects. It hopes to close both by the end of this year after nearly 70 per cent of The Circle on Phetchaburi Road and 90 per cent of The Prime 11 have been sold.
“We believe that we are targeting the right consumer group, that is, people who would not see much of an impact from the economic crisis. This is based on the fact that none of the customers at The Prime 11 has had to take out a mortgage and none of them has forfeited a down payment at the project, despite the global economic downturn,” Duan said.
The company also hopes The Circle can take advantage of the Airport Rail Link, which is scheduled to commence operations in August.
To market its units, Fragrant Property will operate direct activities, especially events in leading department stores together with PR to build its brand and create awareness continuously in the first half.
Strong marketing activities will start in the second half, because the company expects to see an economic recovery at that time, together with the launch of Airport Rail Link.
“We will continue to develop projects with homes in the price range of Bt3 million to Bt20 million in the central business district, because the economic crisis is expected to have a strong impact on premium and low-end consumers, with a lower impact on this group [medium to high end],” Duan added
The Nation January 21, 2009
