Property brokerage ERA Franchise (Thailand) Co has decentralised its business, setting up provincial master franchises and expanding to sell new projects.
ERA targets 70 provincial master franchisees in three years.
President Voradet Sivatachanon said the provincial expansion and new projects will foster faster growth nationwide. Each master franchise can sell both second-hand homes and new units, which helps them generate revenue through more sources.
"Our centralised business in Bangkok the past two decades did not work well, as problems were also centralised and growth was stagnant," he said.
The company signed a contract with five local property brokerages in five provinces yesterday to create provincial master franchises in Ayutthaya, Chon Buri, Nakhon Ratchasima, Phuket and Chiang Mai. It plans to sign with more franchisees in Lop Buri, Phetchaburi, Prachuap Khiri Khan, Khon Kaen and Trang this year.
The master franchise fee is a maximum of 2 million baht, depending on the province's potential. Each master franchise can expand local franchises, provide training and services and collect market data.
This business model will not be used in Greater Bangkok.
ERA is the sales agent for three new property projects and will sign on another seven projects in the near future, mostly condominiums, he said.
He said economic growth will help boost the second-hand home market by 20% this year to 120 billion baht. About 30% of the total value was sold through brokers.
During the first half of the year, the company recorded 6 billion baht in sales, and it aims for 10 billion this year.