Plus Suggests Real Estate Developers Adapt to Economic SlowdownPresent-day consumers attracted to convenient locationsand digital-era facilities
Plus Property, the full-service professional property and facility management agency, suggests real estate developers adapt to the economic slowdown by devoting more attention to following news and developments and by carefully studying the real demand for each location. Developers are urged to make adjustments based on the real situation at hand and to focus on reducing risk by releasing stock at existing projects. PLUS also reveals that present-day consumers remain attracted to locations that offer a good mix of transportation options, and that projects which utilise the IoT technology are increasingly gaining attention from prospective buyers.
Ms. Somsakul Limsuttaphan, Deputy Managing Director of the New Business Management and Sales Support Division at Plus Property Company Limited, the full-service professional property and facility management agency,
revealed that the continuation of an economic slowdown at present has prompted many real estate developers to revise their tactics in order to accommodate current circumstances. Plus property, in regards to its sole agent business, continues to operate in adherence to its long-term road map which calls for an expansion of its customer base towards groups of clients that comprise new-generation entrepreneurs, foreign business persons and major corporations. The roadmap calls for Plus Property to partner with clients to offer more than the services of a sales representative by playing a role in providing consultations before, during and after the development of a property project. This allows each development project to possess characteristics appropriate for and matching the needs of the target client group. PLUS will also be designing sales management and marketing tactics that are customer-centric. Importantly, it will stand by and provide consultation to its client developers in every and all situations without neglecting them. Remarkably, amid circumstances of an economic slowdown, many of PLUS’s clients, especially the major developers, have undertaken positive adjustments
Drawing on its experiences that spanned more than 20 years, PLUS would like to offer suggestions to newer players within the property development circle on how they might adapt. Developers could make the following adjustments in order to face emerging problems:
• Closely follow the market situation and market-related news.
The current phenomenon of economic slowdown affects many countries and thus may influence the purchasing power of consumers globally. Any developer who targets the customer group made up of foreign clients will have to closely monitor the situation within their client's home countries, in order to ascertain whether purchasing power remains adequate.
• Analyze the demand specific to each area and invest in accordance to the market size or to the demand at hand.
With the market made up of real estate investors having been afflicted by the mortgage control measures released by the government, undertaking studies of client groups who make up real demand presents an interesting option. A market survey should be conducted, especially on the sales tally of each project and the number of unsold units that remain in a particular location. From its experience, PLUS believes there will be continued demand for residential properties, so long as products are developed to match the requirements of the target groups in each locality. It is therefore necessary to undertake meticulous studies and researches, and for pricing levels to be reasonable.
• Ample knowledge of each location and of the market.
The location of a property project is one of the first factors taken into consideration by clients. A developer's selection of a location is therefore of paramount importance. The developer needs to understand the market for each specific location and must be able to deliver an accurate analysis of a location’s prospects. Being able to do so allows the developer to undertake a project that is suitable and responsive to the lifestyles of its target client groups. The launch date of each project should reflect real market conditions, and increased consideration should be given to timing as well as the instance of launch. Initiatives supporting a launch should also be adaptable to market conditions.
A developer needs to have insight into the living behaviors of its target client groups and their residential requirements. Such insight allows a property project to be developed and the associated sales and marketing tactics to be deployed to match the taste of clients. Increased focus should also be given into releasing stock at existing projects.
• The developer should have a strong marketing campaign that is able to communicate the images that reflect the project’s selling points and is linked to the lifestyle of the target group.
The design of units and the common area must reflect the target group’s image. Thought must be meticulously applied during development and when selecting materials, in order to reflect the developer’s attention to detail. Competent marketing helps establish a good image for the developer as well as the property project.
The marketing campaign must to be able to communicate the selling points of each project and link them to the requirements of the target clients. Meanwhile, a clear target group should be defined in order for marketing to commence. Importance should be given towards creating a brand story that can reflect the personality of the target group, in both the functional and emotional aspects.
“Plus has undertaken a survey of the current trends of consumer demand, finding that condominiums situated in localities that offer ease of commute and a variety of transportation linkages still answer well to the needs of clients. For this year, the Sukhumvit locality is considered a standout area that reflects the requirements of consumers who prefer to have convenience in all aspects of living. Meanwhile, there is a tendency for new projects being launched this year to place importance in the privacy of residents and dedicate more attention to designing facilities and services that respond to specific demands from niche groups. At the same time, the usage of Internet of Things (IoT) technology to facilitate convenience within a residential project is expected to increasingly receive attention from clients,” said Somsakul.
PLUS’s sole agent
business currently (as of November, 2019) services 13 property projects worth a combined 14 billion baht. 50% of the clients are new-generation entrepreneurs, 30% are listed companies and 20% are foreign funds.