Mr. Anuphong Assavabhokhin, Chief Executive Officer of AP (Thailand) Public Co., Ltd., commenting on the property industry outlook, said, “For the second half of the year, purchasing power is likely to concentrate in the middle-to-upper middle segment of the market for condominiums with average price of no more than Bht 200,000 – 250,0000 per square metre. We expect good acceptance for low-rise products – both single detached homes and townhomes with prices from Bht 3 to 10 million. The first half of this year, our total revenues from low-rise products and condominiums (100% JV) reached Bht 16,160 million. Our net profit was as high as Bht 1,565 million. For the second half of the year, key factors driving us to realise projected revenues will be the incremental transfer of ownership in Life Sukhumvit 62 and Life One Wireless. Both projects will start deliveries in October and November onwards. In the meantime, we have readjusted our condominium launch plan by adding Rhythm Charoenkrung-Pavilion to the list of our new condominiums. It is our 18th joint venture project worth Bht 4,700 million. This means that we will have 19 new projects worth Bht 26,800 million waiting to be launched.”
For the first seven months of the year, the company posted total presales of Bht 24,060 million, up 14.7% on the same period of last year. Low-rise presales account for Bht 14,000 million, a weekly average of Bht 451 million, which was far better than protected growth. Condominium presales stood at Bht 10,060, most of them came from four newly-launched projects, namely 1) Aspire Shukhumvit-Onnut 2) Aspire Asoke-Ratchada 3) Rhythm Ekkamai Estate and 4) The Address Siam-Ratchathewi. These projects receive strong homebuyer acceptance. The company has 19 new projects in the pipeline worth Bht 26,800 million. They include two condominium projects, namely Rhythm Charoenkrung-Pavilion (joint venture) worth Bht 4,700 million, slated to be launched in the 4th quarter, and Life Sathorn Sierra (joint venture) worth Bht 6,300 million, scheduled to be launched in September, and a total of 17 low-rise projects worth Bht 15,800 million, comprising eight single detached home projects worth 8,690 million and nine townhome projects worth Bht 7,110 million.
“The overall market has changed a lot. We have younger and younger homebuyers and their demand is more specific. It poses a challenge for property developers which will have to develop distinguished products to win over consumers. AP is still seeking to be among Thailand’s top developers. We seek to meet the needs of people in every period of life in the most complete and full-circle fashion. Our main commitment is to complement quality of life for people in society and to help strengthen the property development industry of Thailand. We will do that by elevating our operations to creating complete living experiences in new housing products that offer quality, convenience and safety. We want to get as close as possible to the true definition of sustainable quality of life our customers are seeking.” Mr. Anuphong said
Following the company’s readjustment of project launch plan, in 2019 AP will have launched a total of 35 projects worth Bht 57,000 million. They include 17 townhome projects worth 14,840 million, 12 single detached home projects worth Bht 15,060 million and six condominium projects worth Bht 27,100 million.
As at 31 July 2019, the company had a backlog worth over Bht 54,898 million, including joint venture projects. Low-rise developments account for around Bht 9,543 million, all are expected to be realised within this year. Condominiums, including joint venture projects, account for Bht 45,355 million. AP condominiums are valued at Bht 4,899 million, of which Bht 1,873 million will be incrementally realised this year. Joint-venture condominiums are valued at Bht 40,456 million and Bht 4,111 million of them will be realised this year. The key drivers enabling the company to realise the value is the incremental transfer of ownership in condominiums Life Sukhumvit 62 and Life One Wireless, both projects will start unit deliveries in October and November, respectively.