I have developed a test that with great certainty can tell which projects are selling well and also give information about which projects are not doing so well.
Repeated observations over a period of time combined with a scientific approach can deliver the desired results. The test is very simple and most readers will probably say something like, “I knew that already”, after they have read this article.
Why do I need to invent a test? Because most of the developers are reluctant to release information about the latest sales numbers. Even for projects where the sales numbers are good there is often a lack of information released to the public. This is due mainly to the fact that many developers do not have an in-house marketing team but rely solely on external companies that haven’t got a clue on how to do a proper job. Manpower problems could also explain the poor performance, the external companies simply might have too many clients to look after.
When developing my property test I got inspired by the world of fashion and especially the fashion clothes vendors. At a first glance most people would say that property and fashion clothes have nothing in common, however that is not entirely true.
Fashion clothes vendors either import clothes or get their supplies from wholesale shops. The vendors mostly buy clothes that recently have proven to be selling well, they follow the trends in the clothing market and buy clothes that they know there is a demand for.
Let us leave the fashion market and return to the property market. In the shopping malls in Pattaya, especially in Big C Extra in Central Pattaya, there are a lot of property stalls or property booths manned with mainly thai staff. The owners of these property booths will, just like the clothes vendors, test various projects in order to find out whether they can sell a project or not. They never know beforehand what the customers prefer so a period of testing is needed. After a couple of months of testing a project will be removed from the booths if it is not performing satisfactorily. Don’t forget this is purely business, the owner of a booth has to pay a rent of 3500 baht per day in Big C Extra, 2200 baht per day in Big C South Pattaya and 5000 baht per day in Central Festival Pattaya Beach.
The daily rent for a few square meters of space is too damn high so the agencies are forced to focus only on the best selling projects. It does not take long for a model of a project to be removed from a booth if the project is not selling.
If – over a long period of time – many different agencies are selling the same project, it is a sign that this project is selling well.
Since I have observed the booths in the malls I know exactly which models of projects are being removed from the booths, however I see no need to present the bad news here.
What I can say is that there is one project in particular that many different real estate agencies choose to highlight at the various booths. Surprisingly this is the Arcadia condo project. I am surprised because the location is somewhat awkward, however the customers do not seem to agree with this assessment of the location.
If my theory is correct Arcadia is a fast selling project. I do not have access to the latest sales numbers but there is a high chance that the project is selling fast.
Published 29 March 2014