Thailand's real estate marketing takes a new direction

Direct marketing strategies and promotional incentives are becoming increasingly popular as developers attempt to reel in buyers while minimising cost and maximising exposure.

Sellers are ready to woo buyers with incentives such as ‘two bedrooms for the price of one’, ‘try before you buy’, and even free cars and holidays.

It’s all about minimising cost and maximising exposure, according to Apisit Limlongwonse, managing director of Nexus property consultants.

“There has been an increase in [marketing] offers in the past two months because buyers still don’t feel motivated to buy and it’s panic time [for the developers],” said Apisit.

Companies such as Asian Property Development, Preuksa Real Estate and MK Real Estate Development are all reducing their marketing expenditure to no more than three to five percent of their total expenditure, and are switching to direct campaigns such as event marketing and mail-outs, according to a recent survey by a national newspaper.

Many developers are now offering properties fully furnished at no additional cost, says Apisit. “Normally, properties come just partly fitted, but certain apartments are offering fully furnished deals, right down to kitchen appliances.”

While some of these incentives are ‘old’ news, the creativity and size of the incentives have seen a significant increase over the past couple of months.

One of the most popular promotions, according to Apisit, is allowing prospective buyers to ‘try out’ units. “If the units are completed, buyers can stay in them for a few months to determine whether or not they like the place, and, if they do, they start paying. It’s three months living for free and there is no obligation to buy.”

While a stall at an annual real estate show is an ‘old’ tool, companies such as Nexus and Knight Frank have taken this initiative a step further by launching a series of events to be held at various shopping centres and other busy spots around the capital.

“We’re bringing the options directly to [the buyers]. The idea is that throughout this year there will be potential buyers, but who won’t be going to sales offices, because of time constraints and a lot of the properties on offer were launched a couple of years ago. This way people can connect with what’s happening in the market, make good comparisons quickly and find the overall process less time consuming.”

Nexus Innovative Living 2009 will initially host seven shows presenting 14 developments, at popular shopping centres in Bangkok. Each centre has upwards of 100,000 visitors a day.

Source: Asia Property Report 24 April 2009