Developers Get Creative to Stay Afloat
Since condominium developers thrive for survival after the market was hit hard by the COVID-19 pandemic, promotional campaigns became a necessity when their desire sales rate faded away. Creative marketing strategies became new challenges for developers to stay ahead of the competition as straight up discounts are not special enough for the buyers who become more sophisticated.
The intensifying game of clearing unsold condominium stocks among developers, resulted in various and more creative promotions which vary from project to project. Apart from effective customized pricing strategies, Noble Development was clearing their unsold stocks on “Time Machine Price” campaign where completed projects were sold at their launch price years earlier. This was proven to be working as two of their completed projects in the central business district (CBD) area were sold out shortly after the campaign was launched. Moreover, some developers are willing to pay 24-60 months of installments for those who book the unit. Some even exempt transferring and common expense fee for 2-3 years of stay.
Apart from offering regular discounts, some projects also offer freebies on top of the discount. Especially at the higher end of the market where developers get more creative and extreme. Some projects are now giving away a luxury car when buyer purchase a unit under the promotion while some projects are giving away voucher worth over a million baht to shop at a premium furniture store, selling the lifestyle rather selling the unit itself.
Some of the most interesting and engaging promotions with online marketing channels were introduced by SC Asset through live streaming where an actual live concert was held along with the online sales of discounted properties.
Other advantage of online sales also allowed developers to partake with popular e-commerce companies like Shopee and Lazada to participate in special monthly events like the 8.8 or 9.9 where buyers not only get price discount on the condominium unit but also get coins to be used to pay for other products on the site as a cash back privileges. Ananda Development also engage in the 8.8 event on their own social media platform with price discount together with giving away up to 8 Baht worth of gold bars in one of their projects.
More creative promotional campaigns will play as a vital tool to attract buyers. While the market condition is not yet improved, time will bring new, creative, and more interesting campaigns to the market where buyers control the bargaining power. Yet, it all comes down to whether the prices are realistic or attractive enough for the target buyers in that market segment.
An article written by Thanawin Suppakarnpanich, an analyst at Research and Consulting, CBRE Thailand for Bangkok Post dated 9 September 2020.