LUXURY HOME COMPANY DISCLAIMS THAT ISAN HAS THE HIGHEST WEALTHY AND FOREIGN CLIENTS

LUXURY HOME COMPANY DISCLAIMS THAT ISAN HAS THE HIGHEST WEALTHY AND FOREIGN CLIENTS 

Bangkok - According to Anankorn Amornwatee, managing director of luxury home builder Master Plan 101 Co., Ltd., majority of the company's clients are affluent people or business owners, including those who operate ice factories, hotels, rice mills, and internet companies. 

Presently, the majority of customers—roughly thirty percent—are found in Isan, or Northeastern Thailand, primarily in the provinces of Roi Et, Yasothon, Kalasin, and Ubon Ratchathani.

The rest is spread over Bangkok and its surroundings, Chiang Mai in the north and Chanthaburi, Rayong and Chonburi in the east. There are also foreign clients who are married to Thais and build houses worth 40-50 million baht each.

The Central and Southern regions have fewer customers because they do not build very large houses.

As far as the housing market is concerned, there is still no policy to increase housing prices, as costs have not risen sharply. There is also no problem with the shortage of labor.

In the first quarter of 2024, the high-end segment with a price of 20 million baht and above is still doing well because it is not affected by the economic situation, interest rate hikes and loan rejections from financial institutions. This is because they are borrowing less and have a good credit rating.

However, compared to the same period in 2023, the market is not as buoyant as the overall economy is not good. This is reflected in a slight decrease in the number of the company’s customers, but the value is still high. For example, the number of houses priced at 50 million baht has dropped from 50 percent to 30 percent, a decline of 20 percent. This may be partly due to the fact that the company closed deals and signed contracts with many customers at the end of 2023, resulting in a decline in the first quarter.

Master Plan has more than 10 customers and a turnover of 1 billion baht. The average customer builds a house worth 50 million baht, but there are some worth 100-500 million baht. The trend is likely to continue in the second quarter and is expected to continue in 2024.

Although the first and second quarters are not as buoyant, the third quarter is expected to be busier. The house building business is subject to a seasonal pattern. There are currently around 30 customers waiting for the company to review the design and sign the construction contracts. The company has set a sales target of more than 1 billion baht for 2024.

“Customers come to build luxury houses with us, some for 50 million baht, some for 100-200 million baht, and the most expensive is 500 million baht, which is a mansion. In 2023, there was one client, and in 2024, there was already one client in Bangkok who is a businessman, and another one in Chiang Mai for 200 million baht,” Mr. Anankorn said.

Currently, the company organizes promotions every month to promote purchasing power. There are also promotions such as free interior design and landscaping for customers worth 10 percent of the house value.

For example, those who build a luxury house worth 100 million baht will receive a discount of 10 million baht. There is also free solar roof installation, which is currently a trend that customers are interested in because it allows them to save electricity in their homes.