Noble Development, a company listed on the SET, is shifting its focus towards foreign buyers for its upcoming condominium projects in Bangkok due to sluggish domestic demand.
Sira Udol, the Chief Operating Officer for residential real estate at Noble, acknowledged the challenging conditions in the Bangkok condo market in the first quarter of this year, impacting the company’s presales. He attributed this to the slow Thai economy, which has weakened local demand. To mitigate the effects on sales, Noble has adopted a strategy of targeting overseas buyers.
Through a consistent pricing policy that offers the same prices to both Thai and foreign buyers, the company has seen a continuous uptick in sales to foreign markets since 2019. Sales figures to foreign buyers have shown steady growth, with units sold and revenue increasing yearly from 2019 to 2023.
Although total presales experienced a 16% year-on-year decline in the first quarter of this year, foreign buyer purchases during this period still accounted for 66% of total sales. Notably, a significant portion of these sales stemmed from The Embassy Wireless project, a joint venture between Noble and Hong Kong-based investment group Hongkong Land, which attracted buyers predominantly from Singapore, Taiwan, Hong Kong, China, and Myanmar.
The article also highlights the impact of market shifts, such as the rise of the Myanmar market in the first quarter of this year, offsetting the slowdown in Chinese buyer activity seen since 2022 due to economic challenges. Noble remains optimistic about its prospects, aiming for 6 billion baht in presales from foreign buyers by the end of the year with the launch of a new high-value condo project, Nue Prime Asok-Rama 9.
With a focus on attracting overseas buyers, particularly from Taiwan and Myanmar, Noble continues to deploy a mix of online and offline strategies to reach new customers beyond traditional sales channels. The company’s proactive approach underscores its commitment to adapting to changing market dynamics and seizing growth opportunities in the international real estate arena.
