Charn Issara turns to rich families and investment
SET-listed developer Charn Issara Development Plc (CI) plans to introduce big lots to wealthy families and investment buyers, as well as offering discounts and campaigns to boost sales in the fourth quarter.
Ditawat Issara, executive vice-president, said CI aims to generate as much cash as possible because this is crucial in times of crisis.
“The property market has slowed since last year. It was worsened by the coronavirus since the second quarter and now by political demonstrations,” he said. “Amid uncertainties and concerns, property purchases are sluggish.”
To boost sales in the final quarter, the company wants to target buyers with healthy purchasing power. It was in talks with wealthy families and investment buyers to sell units in a big lot.
“A lot of families are looking for units at resort destinations as second homes because they are unable to travel abroad,” said Mr Ditawat.
One of those families was interested in buying seven pool villas worth 200300 million baht at Baba Beach Club Residences Luxury Pool Villa Hua Hin in Cha-am.
“Family buyers prefer units that are ready to move in to as they want to use them as vacation homes during weekends or long holidays, a period they usually spend overseas,” he said.
Meanwhile, investment buyers are looking for off-plan condo units to buy in bulk to get a good deal as there is excess liquidity in the system waiting for investment opportunities.
“Investment buyers expect a general gain of 7% from property purchases,” said Mr Ditawat. “If they get this rate from day one, they do not hesitate. They can also look forward to a capital gain in the future.”
CI plans to launch a campaign with discounts of up to 38% next month and expects to have 300-400 million in sales. The largest discounts will be completed condo units at The Issara Chiang Mai, where 28% of units were sold.
“With an unfavourable market and economic slowdown, we expect a dip of 5% in revenue and sales in 2020, compared with 2019,” he said.
Last year it recorded 2.27 billion baht in revenue, with major contributors including 640 million from property sales, 679 million from hotels and 80 million from services and rents.
Mr Ditiwat said Sri Panwa Hotel in Phuket registered 2,800 room nights with an income of 34 million baht during July to October as part of the government’s tourism campaign, boosting occupancy from zero to 60%. Average daily rent has dropped 15% so far.