Nexus Property Marketing Co., Ltd. points out that the COVID-19 period is a time for buyers and a golden opportunity for sellers, as every project is rolling out promotions in a heated competition to clear stock. Shockingly, some projects in the CBD have slashed prices by 18%. In this context, Nexus has launched the campaign “Condo Gathering: Prices Slashed Below Cost,” becoming the first agent to actively engage in the market with over 1,500 condominium units from 80 projects by 40 renowned developers across the city.

 

        Ms. Nalinrat Charoensupong, Managing Director of Nexus Property Marketing Co., Ltd. revealed the results of a market research on condominiums in Bangkok, stating that during the COVID-19 period, many developers have made significant adjustments to protect themselves from the impacts of the situation, resulting in continued sales in the Bangkok condominium market in the first quarter of this year.

        It was found that in Q1/2020, only 23 new projects were launched, totaling 7,100 units, which is a 30% decrease from the previous year. However, developers had to decide to launch projects as it was part of their plans from the previous year. All developers have thus employed various marketing strategies to stimulate sales, with the most evident strategy being online marketing and price reductions. Data collection revealed that developers have reduced prices by an average of 13%, with some reducing by as much as 30-40%.

       Nexus has organized the campaign “Condo Gathering: Prices Slashed Below Cost”, which responds to the needs of both buyers and sellers. Buyers can find a wide selection of condominiums through Nexus in one place, while developers gain more sales channels.

        This campaign features over 1,500 condominium units from 80 projects by 40 well-known developers in locations such as Bangkok, Pattaya, and Hua Hin. The stock offered ranges from 750,000 THB to 83 million THB, covering all customer segments and price levels.

        Examples of attractive deals participating in the campaign include projects from Charn Issara offering discounts of up to 6 million THB, projects from Ananda Development providing discounts of up to 38%, and the Aspen Lasalle project offering a special promotion to buy a sample room at the price of an empty room, with an additional 20% discount and many free gifts. Additionally, Nexus has received Secret Deals from several developers, which interested parties can inquire about directly with Nexus to hear about Secret Deal offers from the Nexus sales team via Line official: @nexusproperty starting today. This campaign is expected to generate sales of up to 300 million THB.

 

 

       “The campaign “Condo Gathering: Prices Slashed Below Cost” is a collaborative effort among people in the real estate industry like never before, and it marks the largest gathering in 10 years for Nexus. In this campaign, we have stock from developers of all sizes, along with special price deals.

     

        An analysis of the Q1/2020 condominium market shows that only 23 new condominium projects or 7,100 units were launched, which is a 30% decrease from the previous year. Among these 23 new projects, 77% are in the Mid-Market and City Condo segments, with only 23% in the high-end segment and above.

        For sales in the first quarter, it was found that new projects launched below market prices continue to perform well in sales. In Q2/2020, it is expected that there will be few or no new project launches. Given this situation, it is anticipated that the total number of condominium launches for the year will not exceed 30,000 units, and it will be a year for clearing out the existing stock of over 60,000 units. This situation will help restore balance to the real estate market again, as there were previous concerns about oversupply, but now supply is being absorbed, and new supply is not increasing significantly, leading to a new market base for condominiums.

        Currently, the condominium buying and selling situation shows that the low-price strategy is being used more than ever in the past 10 years, with average price reductions of 13%, and in some locations, reductions have reached 18%. In response to this situation, the sales stimulation campaign has emerged, with the campaign “Condo Gathering: Prices Slashed Below Cost” allowing buyers to easily choose from three major locations:

1) Central City Locations covering Sathorn, Lang Suan, Pathum Wan, Sukhumvit-Ekkamai, where the average price at the end of 2019 was 231,000 THB/sqm, but in this campaign, buyers will experience prices starting at 189,000 THB/sqm, or an 18% reduction. This significant price drop presents a rare opportunity for those wishing to live in the city center. Projects participating in this campaign in this area include Sala Daeng One, La Vie Sukhumvit, and Na Vara Lang Suan.

2) Surrounding City Locations divided into 5 sub-locations:

2.1) Sukhumvit near the BTS includes areas like On Nut, Bearing, Bang Na, and Samut Prakan. This area is attractive due to the BTS accessibility, with an average condominium price of 98,000 THB/sqm. Due to the convenience of transportation and affordable prices, this area is very popular, with average prices reduced by 12%. Projects participating in this campaign include The Line Sukhumvit 101, Aspire On Nut, and Ideo Mobi Sukhumvit 66. 2.2) Phahonyothin-Jatujak is very close to the city, just 2-3 BTS stations away from the heart of Siam. This area has limited supply, making it attractive for those seeking privacy near the city at affordable prices, with an average price of 147,000 THB/sqm, and current reductions of about 11%. Projects participating include Lumpini Select Sutthisan and The Line Pradiphat.

2.3) Thonburi-Riverside is a newly emerging area gaining significant interest due to the recent opening of the blue line BTS. The average price here is 138,000 THB/sqm, but due to the variety of condominium prices, it is challenging to find an average reduction, with the highest reductions reaching 18%. Projects participating include De La Piss Charan 81 and The Rich Sathorn-Taksin.

2.4) Ratchada-Ladprao-Ratchayothin has an average price of 107,000 THB/sqm, with continuous demand leading to an average discount of 8%. 2.5) Ladprao-Sapanmai-Ramintra is a new area with a significant stock of projects, with average discounts of 4% due to the low starting prices, averaging only 81,000 THB/sqm. Projects participating include The Origin Phahol Sapanmai and Atmos 71.

3) Outskirts Locations include Wong Sawang-Tiwanon, where prices have dropped significantly. The average price in this area is usually around 89,000 THB/sqm, with reductions reaching about 8%. Projects participating include The Line Wong Sawang and The Trust Ngamwongwan.

 

Thank you for the information: Nexus Property Marketing