COVID-19 is becoming a significant factor that is changing the lifestyles of people worldwide and impacting every business sector, including the real estate industry, which may have to face the “New Normal” due to changes in consumer behavior.

 

Mr. Peerapong Jarunek, CEO of Origin Property Public Company Limited acknowledges that the rapid disruption caused by the COVID-19 situation will undoubtedly lead to a New Normal in the real estate sector in the future. What is crucial is the “preparedness” of operators today and in the future, from product development to addressing consumer behavior, as well as mindset and business processes.

 

Transforming Employees into Micro-Influencers to Tackle 2020

Before delving into the New Normal in the real estate sector, Peerapong paints a short-term picture, stating that the overall “demand” for real estate in 2020 is expected to decline by 15-30%, depending on how quickly COVID-19 resolves. If nothing changes or if only traditional methods are used, such as promoting projects through Out of Home media, operators risk being “disrupted” alongside a market with a shrinking demand of 15-30%.

In addition to measures to support residents and employees, and strict COVID-19 protocols, Origin immediately initiated a program to have all employees become Micro-Influencers under the project “Everyone can sell”. This is based on the belief that each employee understands their target audience and their own strengths and weaknesses. When each person has their own communication channel, such as a YouTube channel, they can reach different target groups and tell their product stories in unique ways. The architect team has one storytelling approach, while the graphic design team has another. As a result, in the first quarter, Origin achieved sales of over 500 million baht under this project.

 

“Previously, we had a sales and marketing team of about 250 people, but today we have transformed over 1,200 employees across the organization to participate in this project. No one is now a burden to the company and has become a profit center, generating an average income of 410,000 baht per person in the first quarter. Even though overall demand may have contracted, we are still moving forward because every team member knows their target audience well, and sales from this project are expected to continue to rise.”

 

New Era of Home Buying: No Need to Visit Showrooms

       The first New Normal related to the long-term real estate business is the consumer behavior in purchasing real estate. As Work From Home accelerates, real estate is becoming more similar to consumer goods. Consumers are “starting to accept” the idea of buying a house or condo, which is a significant asset, without needing to see a physical showroom. Video reviews will become increasingly important, as consumers will use this information to compare projects instead of visiting 5-10 projects in person.

“In China, there is now an online real estate agency platform called Yielu, which has only 25 salespeople but can generate sales of up to 10 billion baht per year, with over 40% of buyers making decisions without visiting the project. In Thailand, we may soon see operators competing to sell condos online, possibly with live sales and limited-time promotions to stimulate faster sales.”

Moreover, Origin Property is also advancing in selling products through online platforms, such as launching an Official Store on Shopee and Lazada, offering ready-to-move-in condos with a booking fee of 1,999 baht and monthly installments starting at 999 baht per million baht. Recently, they have also created LINE@ under the names @Origin Property and @PARK LUXURY to allow consumers to request information, book, purchase, and transfer property ownership.

 

 

Living Further from Work for Bigger Spaces

          The second New Normal relates to housing selection behavior. As society becomes more accepting of Work From Home, the necessity of living in urban areas may decrease. Housing needs to be spacious enough for people to live all day without feeling “bored.” New extensions of various train lines and Work From Home will encourage people to decide to buy homes further from their workplaces to obtain larger living spaces within the same budget. While housing developments may not be significantly affected in size, it is believed that one-bedroom condos in extension stations may need to be around 35 square meters or larger to accommodate the new consumer lifestyle.

          At the same time, living spaces must offer Flexibility and include complete “WFH Function”, as the room may become a space for eating, sleeping, working, and exercising. Whether it’s the bed or balcony, there may need to be more functional uses than before. Previously, Origin, as a leader in Unit Space Design, has been designing spaces that allow for flexible living functions, such as loft-style rooms with ceilings of 4.2-4.5 meters, making the room appear spacious and adaptable.

 

Entering the Era of Touchless, Wellness, and Individual Society

          Another major challenge for operators is “life fulfillment” in the era of New Normal. The third New Normal is individualistic living behavior. As society becomes an “Individual Society”, people will still want to use common areas while also valuing their privacy and being more concerned about health safety. Therefore, the role of operators is to create common spaces that fulfill life in that manner, such as designing Co-separate spaces for people to sit apart in the same common area, serving as a new or additional space to co-working areas. Incorporating technology to meet touchless living needs, such as face recognition systems or voice command systems for use in common areas like elevators, will enhance health safety in usage.

“Wellness will become increasingly important in residential spaces. We already provide hotel-standard services to consumers, and we will expand to include medical services within residences to address wellness needs. We are currently in discussions with partners and expect to reveal information soon.”

 

Diversifying Business to Drive Disruption

        Not only residential projects but other types of real estate projects can continue to thrive. For example, the hotels under Origin are business-purpose hotels, primarily catering to long-stay guests, thus not significantly affected by the COVID-19 situation. However, the overall hotel business will certainly recover after the situation ends, as people will still want to travel, and the demand that has been pent up during this period will explode once the situation stabilizes.

Additionally, Origin Property is gradually adding new services and businesses to align with the increasing consumer demand, such as providing COVID-19 disinfection services for projects under Origin's management to enhance safety for residents. At the same time, they are developing a new food-related business to improve the convenience of life for over 20,000 Origin families currently.

“During a crisis, we must be a Disruptor, thinking about what customers need and acting immediately to adapt to the changing business environment. We are fortunate that our organizational culture is strong, and our employees have a Disruptor mindset, allowing for a steady flow of new ideas. When changes are needed, we can implement them quickly. We will leverage the Disruptor nature of our entire team to drive the organization and create new solutions that meet the New Normal of consumers.”

 

Thank you for the information from: Origin Property Public Company Limited