Firms switch to selling land to boost sales

Small and mediumsized prop¬erty developers create new busi¬ness strategies only when they are faced with high competition or when purchasing power drops.

According to a survey conducted by The Nation, a number of develop¬ers have changed their business strat¬egy from selling residential projects to selling land. This reduces their land banks and opens up new avenues for revenue generation for the companies.

Noble Development president Thongchai Busrapan, who launched a campaign to sell land at Nobel Residence on Patanakarn Road, said a company survey showed that homebuyers prefer to build homes accord¬ing to their own preference at this location. Thus, the company kept aside 30 rai of land out of the total 110rai project and put it up for sale under the Nobel Residence concept.

In the first phase, 53 plots of between 108 and 180 square wah will be sold. The remaining land will be developed into condominiums and townhouses, Thongchai said.

Areeya Property is another com¬pany that launched a campaign last year to sell land without constructing homes.

This is part of an effort to speed up sales of its detachedhousing project.

Company chairman and manag¬ing director Wisit Laohapoonrungsee said this business model would suit those customers who want to build their own unique, detached houses and customise their designs accord¬ing to their needs.

Some property companies also sell their land to other developers when they are in need of cash to develop their existing projects. For example, Metrostar Property sold its land on Sathorn Road to American International Assurance and Prinsiri sold two plots to Land & Houses.