AP (Thailand) Public Co., Ltd., the leader in the development of residential properties and innovations, is elated with the company’s presales for the first quarter of the year. Demand was strong for both low-rise and high-rise products, allowing it to record presales of Bht 12,585 million for the period. As a result, the company has reached 30% of presales projected for the entire 2019 at Bht 41,800 million. The firm is confident that in the second quarter, the real estate market will continue to have a strong demand for properties in the middle-to-high end segment as it is poised to launch 13 new projects worth Bht 19,720 million.
Mr. Vittakarn Chandavimol, Chief Corporate Strategy and Creation, AP (Thailand) Public Co., Ltd., said the real estate market in the first quarter showed good growth prospects with enormous purchasing power for both low-rise and high-rise products as reflected in the company’s presales which reached Bht 12,585 million, of which Bht 6,365 million from condominiums and Bht 6,220 million from low-rise developments. It represented a 25% increase on the same period of last year when Bht 10,016 million of presales was posted. The performance was satisfying because there were not many new projects launched by the company during the quarter. As a result, the company has reached 30% of its projected presales for the year 2019 (at Bht 41,800 million). AP is prepared to remain active in the second quarter with plans to launch 13 new projects worth Bht 19,720 million. These include nine townhome projects worth Bht 8,560 million, three single detached house projects worth Bht 2,360 million and one condominium project worth Bht 8,800 million.
The key success factor behind AP’s first-quarter sales performance is the company’s understanding of demand in each location and the availability of products in wide variety as well as the ability to manage price package to offer affordable value for money. All contributed to good acceptance for both low-rise and high-rise products. In particular, the company’s single detached houses under the brands The City and Centro are key drivers in the overall sales growth. Other AP projects, including its townhomes and condominiums also enjoyed continued strong growth in sales. For example, Aspire Erawan ready-to-live-in condominium project experienced 130% sales growth on the same period of last year, while Rhythm Ekkamai Estate, launched in the first quarter, also received great feedback from urban customers. The main factor behind customers’ buying decision is a new living experience offered by these condominiums, which makes living in a condo more fulfilling with a privacy of living in a home.
For the company’s Aspire projects launched in the first quarter in two prime locations, namely Aspire Sukhumvit-Onnut and Aspire Asoke-Ratchada, good feedback was received from Thai and foreign customers. In particular, Aspire Asoke-Ratchada was able to quickly close sales during its presale period for a total of 1,025 units worth Bht 2,500 million. All of this reflected demand in the property market and continued consumer confidence in products offered by AP, according to Mr. Vittakarn.
“As for the overall picture of the property market during the second quarter, we believe that demand for new residences will continue to be there. Despite the LTV measure taking effect. we are confident that it will not affect the whole market. The positive effect of the measure is that it will make residences with reasonable prices more reachable to real-demand customers and is good for the industry outlook in the long term. So, we will stick to the business plan announced earlier this year. That is, we are in for a long battle with a focus on understanding demand in individual locations to develop and deliver distinguished products covering all segments with all our brands. The goal is to sustainably deliver residential and lifestyle quality to Thai people. For the second quarter, AP will launch a total of 13 new projects. They include 12 low-rise projects worth Bht 10,920 million and one condominium project worth over Bht 8,800 million,” Mr. Vittakarn concluded.
As at 31 March 2019, the company had a backlog worth over Bht 58,960 million, of which low-rise developments account for Bht 11,140 million, all are expected to be realized within this year, and condominiums, including joint ventures, account for Bht 47,820 million, divided into AP condo projects worth Bht 6,530 million, of which Bht 3,395 will be realized this year, and joint –venture condo projects worth Bht 41,290 million, of which Bht 7,750 million will be realized this year with the remainder to be incrementally realized until 2023.
In summary, there are 39 projects worth around Bht 56,800 million planned for 2019. Five of the projects are condominiums worth Bht 22,400 million and the remaining 34 are low-rise projects worth Bht 34,400 million. Presales for the year are projected at Bht 41,800 million and total revenues are projected at Bht 35,900 million (100% JV).