Kitisak Jampathipphong, executive vice president of international property consultant Harrison Plc, forecast that developers of luxury housing would cut prices by 5 to 10 per cent in the second half. The price cuts would affect units valued at Bt7 million and up.

Shrinking demand for housing has led to oversupply, and many developers have been forced to freeze projects, Kitisak said. Commercial banks had also become more cautious in offering mortgage loans.

Kitisak said developers would cut their marketing and media budgets and focus spending on exhibitions.

Visanu Thepcharoen, chief executive of luxury developer Nusasiri Co Ltd, said the company had frozen new housing projects and shifted its focus to ensuring current projects were ready for buyers to move into as soon as possible.

"We have frozen our new housing projects, such as our 340-rai project on Rama II Road," said Visanu, adding that Nusasiri had seven luxury housing projects in Bangkok with average prices of more than Bt10 million per unit.

"With political and economic uncertainty we have seen shrinking demand, particularly for units prices Bt10 million and up," he said. Nusasiri's monthly sales of luxury housing units has dropped from about Bt500 million to about Bt200 million, he said.

"We have not made any sales targets for our housing projects for the second half, as the political situation is still unclear," Visanu said.

He added the company has frozen spending on public relations and marketing. It would focus on promotional events within a six-kilometre radius of each housing projects, Visanu said.

"We have adjusted our strategy from pre-sale activities before building the houses to making fully finished houses at our existing projects and then selling them to our customers," he said. Visanu added the company still has unsold housing units at some locations, including 10 units in its Udomsuk project, about five units in its Bang Na project and about 30 units in its Sathorn-Pinklao project.

Visanu said the company will also shift its focus to developing its new hotels and serviced apartments in Pattaya and Phuket, which are expected to generate higher and more immediate returns.

Harrison Plc yesterday said more than 30 residential projects would be displayed at its "Art of Living: Volume 3" show, from July 13 to 16 at Central Chidlom.

The event is expected to generate more than Bt700 million in sales.

Potential buyers will find a range of promotional campaigns and special offers available, including discounts of up to 50 per cent and Bt10,000 gift vouchers.

Kwanchai Rungfapaisarn

The Nation