In a challenging market, it is important to recognise where investment opportunities lie. One of their main prerequisites of today’s investors is the property must be the best value offered on the market. To assist investors’ search for the best bargains, CB Richard Ellis (CBRE) has introduced a new ‘Hot Deal’ campaign on our award-winning website www.cbre.co.th. The campaign has already built a track record of sales with hot properties selling within the first two weeks of listings.
CBRE Hot Deals selection presents the best opportunities available for a particular project or location and the hottest spots in Thailand’s property market. The selection spans all types of residential properties for sale, including re-sale condominiums in Bangkok, new projects, and resort properties in Phuket, Samui and Hua Hin, residential and office leasing, and investment properties.
Since the launch in mid-March, the CBRE Hot Deals campaign has received a huge response from potential buyers. ‘The strong level of enquiries indicates that the Thai property market continues to attract a mix of local and foreign investors. Weekly web-enquiries have increased by up to 40% in response to the campaign, along with the readership and time spent on our website,’ states Mr. David Simister, Chairman of CBRE Thailand.
CBRE believes there is now a flight to tangible assets and away from holding cash. This has created an active market of investors looking for good returns, at the right prices. The most active sector of the market is re-sale condominiums in Bangkok, particularly for newly completed properties such as The Met and Athenee Residence. Prices for re-sale units for grade-A condominiums in prime CBD locations offer attractive investment opportunities and are ideal for buyers who do not like purchasing off-plan, but are able to secure the same prices as two years ago.
Because the Thai market is underpinned by real end user demand, there is a realistic buying support for Thai properties. The launch of CBRE Hot Deals assists the end-user market actively searching for their ideal properties. Sellers benefit from a mechanism which creates transparency and a rapid sale.
The property search process can be a challenging task in a market that lacks transparency. Due to the nature of the market with many small agents and properties randomly listed, very few players in the industry have a real market overview. With a strong research focus, CBRE is able to track data and transactions and accurately reflect this in the Bangkok and Phuket quarterly property report.
With the web, CBRE aims to use this to deliver a more transparent market place similar to the Hong Kong and Singapore markets. The CBRE website with a volume of good quality stock is providing a clear and visible market for secondary sales, a market which has previously been opaque and illiquid. Sales at prices buyers and sellers can understand are now going from enquiry to contract significantly quicker. CBRE is already seeing results from the web in generating a high volume of enquiries and an increasing number of web-transactions, but closing sales from the web still requires a traditional agency approach.
Given CBRE’s experience in the market, we are well positioned to offer focused advice to genuine sellers on how to price their properties to achieve the quickest sales, at a maximum achievable price. CBRE’s extensive list of qualified purchasers enables us to reach a volume of potential buyers effectively; therefore ‘priced to sell’ properties move quickly. A clearly segmented database by budget and preferences also allows a targeted marketing effort.
Contrary to the prediction that the Thai property market will follow global trends and slump, prices have in fact, held up well and many investors are choosing to hold on to their properties. Global sentiment seems to be improving in terms of the economic outlook and many believe asset prices have bottomed out. If this is the case, investors holding on to cash are at risk of inflation, and trading cash for asset may be the smart move for 2009.
Check out CBRE Hot Deals at www.cbre.co.th, or subscribe to our mailing list to receive updated Hot Deals listings.