Origin Property PCL (ORI) has reportedly sold all of its units on the new condominium project, The Origin Onnut, via an online platform despite the property market being heavily impacted by the COVID-19 outbreak.
Local media reported that the company’s strategy (Origin Next Normal, The First Wave) launched ‘The Origin Onnut’ online pre-sales event without sales staff and an offline office.
The project received great feedback and successfully closed deals within an hour last Saturday.
Apisit Soonthornchukiat, the managing director of Origin Condominium, revealed that the success of the Condominium unit sales came from lowered prices as there weren’t any sales office operating costs.
“The reasonable prices persuaded customers to purchase our units, starting from 1.29 million baht in the Onnut area. And the online platforms helped the process be reachable and convenient for everyone,” said Apisit.
The company will release two projects in the third and fourth quarter of 2020, including ‘The Origin E22 Station’ and ‘The Origin Plug and Play Ramintra,’ and will continue to implement its online platform sales for both projects.
Property market in COVID-19 era
The Origin brand is focusing on the younger demographic, especially people who are in their first jobs and first condo buyers (age range: 23-28).
According to the Employers’ Confederation of Thai Trade and Industry, more than 500,000 recent graduates will be left unemployed, so it is important to pay attention to how property developers will cope with the situation.
Finansia Cyrus Securities said that ORI didn’t have any new projects opening in the second quarter of 2020 but the profit estimate is expected to be positive from the stock clearance sales which is worth 6,400 million baht.
The prediction for Origin’s second-quarter profit stood at 635 million baht, rising 7 per cent compared to the first quarter and dropping 12 per cent compared to the same period in 2019, according to Finansia Cyrus research.
Finansia Cyrus recommends ‘buying’ ORI shares with the target price of 8.80 baht (PER 7.3x) and 6.8 per cent dividend yield.
As of Monday afternoon (2:50 p.m.), ORI shares price moved up from 7.10 to 7.15 baht per share or +0.7 per cent. Earlier, ORI shares surged up 6.06 per cent on Monday last week with a transaction value of 165 million baht.
