AP Thailand Still Upbeat About Condo Market and Plans More Projects For Rest Of The Year
SET-listed developer AP Thailand remains on course to launch new projects in the second half of the year after launching 17 projects worth Bt30.78 billion in the first half of 2019. The company reported strong presales in the first half of the year of Bt20.8 billion , up 20% year-on-year, of which condos accounted for Bt9.5 billion.
Life Sathorn Sierra with its gardens totalling 5 rai.
AP condominiums that were launched the first half of the year included , The Address Siam – Ratchathewi
, Rhythm Ekkamai
and Aspire Asoke – Ratchada
and were all well received by customers with a real demand, which was a key factor behind outstanding growth during the first half of the 2019.
According to Vittakarn Chandavimol, the company's chief of corporate strategy and creation, already a new condominium project worth about Bt6.3 billion will be launched shortly. The project called Life Sathorn Sierra
, is a joint venture project 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.
As of the middle of the year, the company had a backlog valued at Bt57.31 billion. Condominiums (joint ventures included) accounted for Bt 47.18 billion, of which AP's wholly owned projects made up Bt5.65 billion, with Bt2.6 billion to be realized this year. The firm is confident that total revenue targeted at 41.8 billion for the year will be achieved.
“Despite the many factors that shaped up the real estate industry in the first half of the year such as the slowdown in the global economy or the domestic control measures that affected the business atmosphere, we believe that there is still a demand from customers looking for a condominium. It is just that that demand is more specific. This means that the location
, the condo 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 Bt20.8 billion as of 30th
June 2019” commented Mr Chandavimol in an interview with Thailand Condo News.
The Life Sathorn Sierra
is a single 40 storey condo building project on 8 rai of land with a total of 1,971 units. Prices start at Bt2.49 million for a 28 sqm studio unit with other unit types including one bedroom starting at 32sqm and 2 bedrooms starting at 57.5 sqm. The project is located a few metres away from the BTS Talat Phlu Station. With an array of facilities and the biggest lush gardens (5 rais!)for a condo project in Bangkok to date, the condominium is going to be another sell out for AP Thailand.