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In an atmosphere of economic uncertainty, rising inflation and reduced lending, major developers are pulling out all the stops to ensure home-buyers' interest in the second half of this year.

Developers see transfer of units picking up in the third quarter on the strength of the government's stimulus package. To push home-buyers to invest in the "better" second half, companies have launched promotional campaigns with offers ranging from bonuses to discounts, free furniture to appliances and financing packages.

Property Perfect has tied up with four financial institutions and three furniture manufacturers and distributors. It is offering 100-per-cent bank loans at an interest rate of 2 per cent for two years and zero transfer and mortgage registration fee. The offer runs until the end of this month.

Iris Group is planning a marketing event, "Iris Day", to push sales of three projects - one project is located on Rama IX-Srinakarin Road, the second has been launched under the "Iris Orchid Park" brand on Srinakarin-Theparak Road and the third has been launched under the "Iris Residence" brand. It is offering amenities such as free interior decoration, built-in kitchens, air-conditioners, water heaters, refrigerators, landscaped gardens, water pumps and water tanks.

Asian Property Development had launched a campaign that promised houses at "good locations" and played the "fully reserved" card to lure buyers in the last second quarter. 

Customers got a bonus of up to Bt700,000. Siam Commercial Bank also joined in, offering loans with zero rate of interest for six months.

With the loss of confidence and inflation worries, buyers are putting off plans to invest in property. Developers are looking to change that with campaigns focusing on the emotional worth of a home. The promotional schemes are aimed at making buyers feel they can afford a home and still keep up with the high cost of living.

Another cause for concern is tightened lending by banks, which is responsible for falling interest among buyers.

Property companies also have to deal with rising construction costs.

Strategies to counter rising costs include stocking up on steel, hiring turnkey contractors, using finished materials to construct or designing all projects in such a way that same raw materials need to be used, reducing size of projects, adjusting prices to factor in the rise in costs and slashing spending.

MetroStar Property reduced its advertising and marketing budget by 66 per cent to Bt33.99 million in the first quarter. This helped reduce losses to Bt25.02 million as compared to Bt39.74 million during the same period last year.