Since the Covid-19 outbreak early last year, many businesses have gone through strategic adjustments, coming up with new business plans to acclimate into this New Normal Era. Every industry has been hit hard, including real estate.
Today, InvestMaN would like to share an idea of Pruksa Company, one of the biggest real estate development groups in Thailand. According to Bangkok Biz news, Pruksa Real Estate Public Company Limited has revealed a plan to turn this crisis into an opportunity in the making. The company is planning to develop its land bank, initially subject for condominium projects, instead turning them into Urban Street Market, targeting the new generation. Residential projects are to be put on halt due to the current over-supply of the condo market and the poor economy since the pandemic.
The company does not emphasize on generating income from this project. It is more of conducting short-term experiment/pilot testing to better understand the new generation of people who have turned their attention to online marketplace and e-commerce businesses. This idea also encouraged the growing popularity of the flea market trend among Thais, in which we have witnessed many successful flea markets around today. This business model might be the answer to business owners looking for a small storefront location that customers can easily access.
Aside from the main objective of this business model, InvestMaN view this move as a great visionary planning by the management. In addition to the opportunity to do something different, this also helps the company avoid the increase in subjected real estate tax if its land bank remains unused. Understanding the changing in customer behavior can help them develop projects that genuinely reach young people.
For anyone who is holding on to land but yet to decide on the development, Prospec Appraisal provides consultation regarding the feasibility study of land development, which is based on the principle of fundamental valuation.
Credit source : Bangkok Biz