In Q2, sales are projected to drop by another 50% compared to Q1 overall. So, what should be done next when the business must keep moving forward?

Purchasing a home can be considered a Natural Demand; when there is a birth rate increase or changes in social conditions, people will think about changing their living arrangements. Currently, we are facing the crisis of Covid-19, which has resulted in both negative impacts on struggling businesses and positive outcomes for thriving ones. In the broader picture, the home sales sector has been negatively affected overall. However, if the real estate business remains focused on the principle that Location is King and during the most critical times, Cash is King, the adaptation strategies that companies are currently choosing include:

  1. Restructuring the organization by cutting business units and reducing personnel that do not generate income.
  2. Lowering sale prices to clear stock and create cash flow.
  3. Selling off land or projects to reduce debt burdens.
  4. Merging with other businesses to help with both funding sources and workforce.
  5. Offering products to suppliers with guaranteed returns (often referred to as building goodwill).

As for recommendations, during this crisis, look for opportunities in sectors that are thriving after a long period of stagnation, such as the food packaging plastics sector, health and hygiene products, life and health insurance, property insurance, and logistics for consumer goods. The strategies should be completely revised as follows:

  1. Seek new locations and new customer groups in industries benefiting from Covid-19.
  2. Adjust products to be priced appropriately according to the actual purchasing power of people in those locations.
  3. Revise branding strategies, as concerns about health and environmental awareness will intensify.
  4. Increase sales channels through online media or return to direct selling, setting up booths, and roadshows at companies and factories instead of relying solely on shopping malls or waiting for sales at sales offices.

Finally, many countries estimate that the situation may improve by August this year at the earliest, or by December this year at best, with the worst-case scenario extending until the end of December 2021. Therefore, in Q2 of this year, every real estate developer must find their own survival strategies to endure and be prepared for a situation that may extend until December 2021.