Several large property developers in Thailand are using overseas roadshows in an attempt to boost sales as the domestic market struggles to cope with low overall purchasing power and limited growth in domestic demand, local media reported.
Banks continue to limit mortgage approvals, rejecting a significant amount of applicants in the middle- to lower-income market. The Nation reported that some banks have rejection rates of up to 50 percent.
Even with the Thai baht having appreciated 2.41 percent against the US dollar during the past six months, residential prices in Thailand are still relatively inexpensive for foreign buyers. Investors from Hong Kong, Singapore, China, Taiwan and Europe can purchase high quality units for much less than in their home countries.
Domestic residential demand has expanded only slightly during the first half of the year. This has forced many developers to attempt to tap into new demand from foreign buyers interested in expanding their investment in Thailand, Aliwassa Pathnadabutr, managing director of CBRE Thailand told the newspaper.
Foreign buyers view residential property in Thailand as a good long-term investment especially since prices in Thailand can represent a value. For developers, the fastest, and arguably the best, way to introduce their developments to international buyers is to host roadshows.
Aliwassa added, “Holding roadshows to introduce projects overseas is the new market strategy for driving presales, by focusing both on customers buying a second home and investors planning to buy a property to rent out for long term.”
Surachet Kongcheep, associate research director of Collier International, pointed out that Thai residential projects are still priced lower than in places like Singapore or Hong Kong and make them attractive to buyers from these markets. Sansiri, SC Asset and Nusasiri are just a few of the Thai developers to have conducted or scheduled roadshows in these countries.
