Bel Air Panwa Restructures Sales Initiative to Changing Market

With a declining overseas resort grade target buyer base for its condominium product the Watson Property Group has readjusted its strategies to changing conditions. Back of an inventory of 36 unsold units the pricing levels are in the range of THB 43,000 to 48,000 baht per square meter and unit prices averaging THB 4.9 to 7.7 million on its stock of condos.

A hospitality chain Hotelcorp was signed to manage the complex and operate it as a resort, which will spur buyers looking at short term rental yields. Guaranteed rentals for the first three years at 7% per annum have been implemented and the units are already fitted out to function as hotel inventory.

It will be interesting to see at this pricing level and the enhancements, if it's going to be an effective strategy to get property purchasers off the sidelines. We'd expect to see more hotel branding and other marketing programs such as locked in returns during the current slump in transactions. Certainly the biggest challenge remains matching buyer's expectations of large scale discounts with developers needing cash flow but with limited inventory looking to retain some semblance of project profit.

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wow, look at the hits on this story !

Angus, 26 Jun 2009 | 2:50 pm

s much for my last comment being printed hey

Bill Barnett responds:
we've contacted the developers and they have seemingly declined to comment, so best to close out the link and move on, understand the points raise and appreciate them, perhaps you can contact them direct to talk further, thanks

Patrick Wright, 19 Jun 2009 | 4:14 pm

agree with the last blogger, it is very disapointing that this particular developer can not defend their decisions. are they developing anything else in Phuket ? they had a project they were marketing at Kata Beach didnt they ?

Bill Barnett responds:
Believe the sold the Kata development sometime ago and are looking at projects internationally.

Terry White, 15 Jun 2009 | 5:51 pm

Bill, this is really disapointing, as i would of thought Watson Property Group would defend their decisions to go head to head with their loyal investors. Lets hope the more crediable developers dont follow suit. PW

Patrick Wright, 15 Jun 2009 | 10:40 am

hello Bill, when can we expect a comment from the developer ?
Bill Barnett responds:
We've sent a note, but no comment yet, we can take a horse to water but we can't make them drink.

Patrick Wright, 14 Jun 2009 | 9:21 am

Maybe a comment from the developer about their thoughts and their view of how this will effect resales ?

Bill Barnett responds:
Yes good idea, will ask them for a comment, thanks for reading.

Patrick Wright, 10 Jun 2009 | 2:27 pm

its like a share price dropping, do u buy now or wait for it to drop further and pounce..to be honesy, i agree with Mr Glovers comments and i wonder how many other Phuket developers will be doing the same ?

Bill Barnett responds:
Fortunately there are not indications of large scale discounting at the moment though buyers are large reductions so a challenge to match buyers and sellers expectations.

JH, 09 Jun 2009 | 4:09 am

bill, couldnt agree more with Danny's comments, we had the same experience happen to us in the UK & we lost 20% on the investment when we came to sell, all because the developer paniced and firesold us out. Lets face it, their profit is in the remaining units, so to them its as case of cutting their profits while the investors take a bath. BL

Bill Ludwick, 08 Jun 2009 | 2:05 pm

Bill, i would have to agree with Danny, i can recall when BAP was released they were described by the on site sales staff as being the most affordable apartments with sea view on the island, i would shutter to think how the residents would feel with such discounting going on by the developer. TW

Bill Barnett responds:
Its a valid point thanks.

Terry White, 08 Jun 2009 | 10:10 am

im sorry, it doesnt matter ho you dress it up, it still sounds like a fire sale to me..how would the original investors who paid a premium feel knowing that the value of their apartments have now gone sour, i know of at least 3 buyers trying to get out of this development, they will not be impressed with this pricing.
Bill Barnett responds:
Interesting comment and yes once you start discounting later after a launch the first buyers in will most likely feel a bit of agitation, that given cash flow and survival modes are the main consideration right now for a lot of businesses so unsold inventory remains an issue for most, lets see if this initiative does stimulate sales or not,

Danny Glover, 07 Jun 2009 | 11:41 am