ERA keen on second homes

The recovering Thai economy is likely to stimulate property sales, prompting the real estate brokerage ERA Franchise (Thailand) to expand into resales and rentals of second homes and resort units in tourist locations.

ERA CEO Voradet Sivatachanon says a regional franchise will open in Pattaya.

The company will start with a regional franchise in Pattaya that will act as a real estate broker for five neighbouring provinces. This franchise will focus on reselling holiday homes, as the company anticipates stronger demand from both Thais and foreigners following the economic rebound.

Voradet Sivatachanon, ERA’s chief executive officer, said the company would use its regional network of brokerages in Singapore, Malaysia and Indonesia to enhance its prospects.

“Based on our pilot tests in the second home or tourist home market, we feel there are many buyers with sufficient savings to buy a unit immediately,” he said.

The company also plans to launch ERA HomeBase, a mini-franchise where real estate agents operate out of their home. It expects to collect 6% royalty fees.

The Thai brokerage now has 28 franchised branches with 1,635 agents. It anticipates 10 more branches and 1,000 more agents next year.

ERA experienced better business this year as both small and large property developers appointed the company to help market their products.

It has about 13,000 listings, up from 10,000 last year, with an average price of 3 million to 7 million baht. About 35% of the listings are single houses, 35% condominiums and the other 30% townhouses and land plots.

Mr Voradet expects 50% sales growth next year from an estimated 2.2 billion baht this year. The overall second-hand housing market is projected to grow by 10% next year to about 100 billion baht.

SOURCE: Bangkok Post

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