Bel Air Panwa Restructures Sales Initiative to Changing Market
With a declining overseas resort grade target buyer base for its condominium product the Watson Property Group has readjusted its strategies to changing conditions. Back of an inventory of 36 unsold units the pricing levels are in the range of THB 43,000 to 48,000 baht per square meter and unit prices averaging THB 4.9 to 7.7 million on its stock of condos.
A hospitality chain Hotelcorp was signed to manage the complex and operate it as a resort, which will spur buyers looking at short term rental yields. Guaranteed rentals for the first three years at 7% per annum have been implemented and the units are already fitted out to function as hotel inventory.
It will be interesting to see at this pricing level and the enhancements, if it's going to be an effective strategy to get property purchasers off the sidelines. We'd expect to see more hotel branding and other marketing programs such as locked in returns during the current slump in transactions. Certainly the biggest challenge remains matching buyer's expectations of large scale discounts with developers needing cash flow but with limited inventory looking to retain some semblance of project profit.