Using a plan to attract buyers and stimulate sales at eight condo projects in four tourist destinations throughout Thailand, Sansiri launched a rental yield guarantee program for some 800 unsold, ready-to-transfer units.
The company is hoping to reach a total of THB1.5 billion during the program which runs from now until March of 2016. In order to reach this target, Sansiri will need to sell at least 50 units. Unit prices range from THB2 million to THB70 million. The company is already planning to hold roadshows in Hong Kong, Singapore, China and Taiwan to promote the scheme.
Senior executive vice-president Uthai Uthaisangsuk said that Sansiri completed construction of eight condos with new projects opening in Phuket, Hua Hin, Cha-am, Pattaya and Khao Yai this year. There were a total 2,500 units in the completed developments and Sansiri has 800 units worth a combined THB3 billion still for sale.
In addition to discounts, the developer is also offering a rental yield guarantee of either six percent or seven percent for two to five years, depending on the project. Sansiri is including a free stay of 60 nights at these eight projects as well as projects in four other locations for buyers taking part in this program.
Uthai said that demand for ready-to-transfer condos in tourist destinations is normally driven by yield guarantees and whether they are ready-to-stay or ready-for-rent. These properties are interesting to both Thai and foreign investors with high purchasing power. However, last year saw the tourism sector decline and that is hurt this segment of the market.
He added that the vacation condo market in tourist destinations throughout the country is recovering and growth is in line with the tourism sector that is still recovering from last year’s coup. “The property market in tourist destinations was in bad shape last year,” Uthai stated. “Even late in the year, during the high season, it was still bad.”
