‘AP Thailand’ reveals strong presales first half of the year Rakes in Bht 20,800 million
Bangkok (3 July 2019) – AP (Thailand) Public Company Limited, a leader in the development of residential property projects, has announced business performance for the first half of the year, having reached presales of Bht 20,800 million projected at Bht 41,800 million steadily moving towards the year’s target. The first half’s presales represented a 20% growth on the same period of previous year. The company has plans to stay active in the market for both low-rise and high-rise developments with an important commitment to meeting homebuyer’s needs and fulfilling the quality of life for people in society. A total of 23 new projects worth Bht 27,265 million are planned to be launched and they will cover the needs of customers in all market segments. The main highlight will be the launch of a new brand called The Sonne Srinakarin – Bangna to fill a gap in the luxury portfolio as well as the return of condominiums under the brand Life Sathorn Sierra which is tipped to be Thailand’s first model for the development of condominiums in tandem with drawing a blue print for sustainable living. The firm is confident of closing 2019 meeting its projected presales.
Mr. Vittakarn Chandavimol, AP (Thailand)’s Chief Corporate Strategy and Creation, said, “Despite the many factors that shaped up the real estate industry in the first half of the year such as the slowdown in the world economy or the domestic control measures that affected the business atmosphere, we believe that there is still a demand from customers looking for a residence. It is just that that demand is more specific. This means that the location, the house model and the price package must be absolutely right to warrant a buying decision. The challenge developers are facing now is the requirement for projects and price package that take into account the real demand and the ability to repay mortgage loans of customers. In the first half of the year, our strategy was to fight a long battle. We launched all brands in our portfolio and offered products that meet the specific need of each segment. It resulted in our strong presales and reflected in our performance for the first half of the year, having reached presales of Bht 20,800 million (30 June 2019). Condominiums account for Bht 9,500 million and low-rise developments contributed Bht 11,300 million. This was a 20% growth on the same period of last year when we posted Bht 17,265 million of presales. It bucked the overall trend of the market that experienced some slowdown during the year’s first half.”
“In the first half of the year, AP launched 17 new projects worth Bht 30,785 million. Customers responded well to our low-rise developments and condominiums. Of the Bht 20,800 million in presales for the first half, more than 54% were contributed by low-rise products, particularly single detached home The City Ratchapruek – Suanpak and Pleno Donmuang – Songprapa, both received a feedback higher than pre-sale expectations. For condominiums, The Address Siam – Ratchathewi, Rhythm Ekkamai and Aspire Asoke – Ratchada were well received by customers with a real demand, which was a key factor behind outstanding growth during the first half of the year,” Mr. Vittakarn added.
“For the real estate industry in the second half of the year, we believe that every developers stay alerted and capture every situation closely. However, the factors that will stimulate public confidence and buying and selling atmosphere are the clarity in the political situation that will contribute to confidence of real-demand customers and investors. In particular, we will see a clearer future after the new government and its economic team of the country are formed. The industry is expected to benefit from the new government’s economic stimulus plan which should help get national economic growth back on track again.,” Mr. Vittakarn said.
As for its new projects to be launched in the second half of the year, AP will stick to its plan to launch 23 new projects worth Bht 27,265 million, 12 of which are townhomes worth Bht 9,250 million, 10 are single detached houses worth Bht 11,715 million and one condominium project worth Bht 6,300 million. For the highlight in the second half of the year, AP will focus on building a new standard of residential development and will get aggressive in the market for low-rise and high-rise products. Its main mission to accomplish is to try and meet homebuyer’s needs and to fulfill the quality of life for people in society. The first highlight will come in the launch of a new brand called The Sonne Srinakarin – Bangna. Valued at Bht 600 million. It will be the first time that space innovation and security in the world of the future are merged together for real living. AP will open for official sale of the project in September. For condominiums, AP will launch Life Sathorn Sierra (a joint venture project) worth Bht 6,300 million. It will be first time in Thailand that a high-rise project is developed in tandem with drawing a blue print for sustainable quality of life. Life Sathorn Sierra is expected to be launched soon.
As at 30 June 2019, the company had a backlog valued at Bht 57,310 million, of which low-rise developments account for Bht 10,130 million, all are expected to be realized within this year, and condominiums (joint ventures included), account for Bht 47,180 million, of which AP-wholly owned projects account for Bht 5,650 which will be realized this year of Bht 2,604 million, and there are Bht 41,530 million worth of joint venture projects which will be realized this year of Bht 5,505 million and remainder will be realized through to 2023.
In summary, the company has 40 new projects worth around Bht 58,050 million planned for 2019. It plans to launch 23 projects worth Bht 27,265 million in the second half of the year. As at 30 June, the company recorded a total revenue of Bht 20,800 million and there are also over 100 ongoing projects around Bangkok with outstanding value of over Bht 64,293 million. The firm is confident that total revenues projected at Bht 41,800 million for this year will definitely be achieved.