Some Hua Hin Developments, is selling out fast!
One of the most frequent errors by property developers in hot markets or with premium attributes is the misconception that a fast sell-out is good. It’??s frequently hard for real estate sales people whose mantra follow’??s the ABC?’s (always be closing) to comprehend the big picture, or more importantly the bottom line.
Property projects stay the quantum rules and also relatively finite investments are how much does it cost to construct and just how much can you sell it for? Recently a great development in Hua Hin area did a rapid fire start and also the result was a fast sellout. Was this truly a success can you ask? In lots of ways, given the two-year time period it is going to take to construct as well as the potential for higher-yielding revenue the answer isn’t that black and white.
Looking between the lines, for the developers who are funds movement determined and undertaking multiple ventures the capacity to recycle capital is so crucial to continue. You need to look at the price of money, be it internal or external funding.
Leaving too much money on the table is never a good thought, as well as in Thailand where speculation by expense buyers who will flip with good levels of pro-fit prior to the development completion signifies the developer has lost out.
How would you avoid the pitfalls of we could call it premature sell-outs? Undertaking an off-market sale to existing clients to gauge demand is one way. Another is to phase the project. Ideally during a development cycle the ability to improve pricing in line with demand remains the attempted and reliable way, but should you have already sold out, the cost boost have flown out the window as well as an excellent offer of incremental profit that could have bolstered the bottom line.