The Studying Problems and Determining Strategies to Increase Sales of Foreclosed Properties (NPA) the Government Housing Bank’s Chonburi Debt Management Division

Abstract

This study investigated the problems and defined strategies to increase the sales of Non-Performing Assets (NPAs) at the Government Housing Bank's Chonburi Debt Management Division. The objectives were: 1) to study and analyze the causes of the problems; 2) to study the decision-making process of customers; 3) to explore strategies for managing NPAs. It was a mixed-methods research, conducted through in-depth interviews using purposive sampling with five employees from the Government Housing Bank's Chonburi Debt Management Division, and quantitative data collection through online questionnaires from a sample group of customers interested in purchasing NPAs. The exact number of the population was unknown, so convenience sampling was used with a formula for calculating samples when the population size is uncertain, totaling 200 individuals.  The study found that the main customer groups consist of investors, corporate employees, civil servants or state enterprise workers, and individuals employed in organizations with benefits from the Government Housing Bank. These customers are primarily interested in buying single-family homes, townhouses, and condominiums priced between 1,000,001 to 3,000,000 baht, either as investments or for residential purposes. They prioritize location and favorable long-term loan conditions. The primary challenges in selling these properties are complications with trespassers and the poor condition of some properties, which make them difficult to sell. From the analysis of factors hindering sales growth, three main causes were identified: 1) Product aspect: Some assets are in a state of disrepair and not immediately usable, requiring time-consuming and costly repairs; 2) Price aspect: Stemming from the deteriorated condition of the assets, the need for repairs effectively increases their overall cost; 3) Personnel aspect: The company responsible for asset management is understaffed, leading to inadequate coverage in maintaining the assets. From studying the decision-making process of customers in selecting and deciding to purchase Non-Performing Assets (NPAs), the primary target groups were identified as investors looking to buy for resale and employee groups seeking residential properties. The key factors influencing their purchase decisions include: 1) The availability of a diverse range of properties in various locations, priced competitively compared to other financial institutions; 2) The option for extended installment payments up to 48 months; 3) Promotional sales and discounts; 4) The convenience and accessibility of purchasing through both online and offline channels. Strategies for increasing the sales of NPAs include: 1) Tailoring promotions to align with the interests of the target audience; 2) Enhancing online marketing communication through effective Social Media Marketing; 3) Inspecting properties and ensuring they are in a sellable condition; 4) Selecting properties in good condition for auction; and 5) Offering price reductions, promotions, or special conditions for properties in significant disrepair.