Developers Respond with Marketing Push.

Boathouse - Hua Hin

Boathouse - Hua Hin

Buyers fade away as recession grips Europe, Japan.

Luxury residential and villa projects in Hua Hin have begun aggressive marketing campaigns following a 30-per-cent drop in buyers - both domestic and foreign - in the first quarter of this year, compared with the first quarter of 2008.

A survey by The Nation last week found that prominent among the campaigners for new business was a condominium project developed by Boat House Hua Hin.

Deputy managing director Kiridi Vibulpraphan said demand for residential projects in Hua Hin had fallen significantly because both domestic and foreign buyers were delaying their decisions to buy because of the economic downturn. The market trend has forced the company to make special offers to boost its sales.

Boat House Hua Hin will accept a down payment of only 5 per cent for 100 complete units of its condominium project. It will also make monthly mortgage repayments to Siam Commercial Bank for the first two years of a loan contract. Within that two-year period, buyers can decide to sell their unit back to the company or they can opt to rent it, rather than buying. The special deal relates to only 100 units that are already complete. The rest of the project remains under construction.

“We launched this campaign because our sales in the first two months of this year fell short of our target by 30 per cent,” he said. Boat House Hua Hin expects sales worth Bt500 million from the campaign, Kiridi said.

Other property firms have also revised their projects because of the slump in demand.

Prime Nature Villa has resized a low-rise luxury condominium project called @ Prime Nature Hua Hin from 54 to 94 units, in the process expanding its market from foreign to domestic buyers after some customers cancelled their contracts.

Real Estate Information Centre director-general Samma Kitsin said demand for luxury residences in tourist destinations such as Phuket, Hua Hin and Koh Samui had fallen by 30 to 50 per cent. The number of foreign buyers has plummeted following the onset of recessions in Europe, the United States and Japan.

This market situation has forced most property developers in these locations to cut their prices and offer special marketing campaigns to drive sales in the first half of the year, he said.

About the author

Somluck Srimalee Somluck Srimalee
Somluck Srimalee is a journalist with The Nation, Bangkok's independent English language newspaper and specialises in the property and real estate sectors.
Other posts by Somluck Srimalee ( 45 )

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