Mr. Vittakarn Chandavimol, Chief Corporate Strategy and Creation, AP (Thailand) Public Company Limited (AP), said that in the first half of the year, the company was growing strongly amid the hard-hitting crisis and was able to manage sales and ownership transfer excellently. As a result, its performance in the first half of the year had reached a new high with record presales and ownership transfer. During the period, its presales reached 17,817 million baht, an increase of 18% on the same period of last year, particularly for its superstar products – single detached houses and townhomes that were growing by leaps and bounds. Consequently, the overall low-rise product portfolio of AP grew by 28%, especially in the second quarter alone when low-rise presales topped 9,100 million baht. All of this was an organic growth which clearly reflects AP’s corporate potential despite the fact that it only launched 5 new projects valued at around 4,060 million baht.
AP (Thailand)’s ownership transfer in the first half of the year is estimated to be at over 20,000 million baht. The company is confident that the closure of its construction sites will not affect its projected revenues for the whole year.
In the second half of the year, AP (Thailand) prepares to make significant progress in a new segment by moving upmarket to the super luxury sector. The highlight of great interest will be the revitalization of the brand Baan Klang Krung, whose locations right in the centre of the city will be given prominent publicity this time around. The revitalized Baan Klang Krung will model after the success of Baan Klang Krung Thonglor’s city-centre residential development. The pilot project will be Baan Klang Krung Sathupradit-Rama 3, the only luxury single detached home development in the centre of the city, which is available exclusively to only 13 families for 35-60 million baht. AP will organise a pre-sale event for the project in September.
In the condominium portfolio, the company will diversify into the more mass market by re-imaging the brand Aspire under the concept LIVE AS ‘YOU’ ASPIRE: Living at Aspire, Create YOUR Aspiring Life. The focus will be on four new advantages: CITY-ZONE LOCATION, all developments will be built in prime urban locations, have limited units and can be accessed through existing and future modes of transportation; MODULAR LAYOUT DESIGN, a space design that is adaptable to functionality; UNCOMPROMISED FACILITIES, all you need and more for common areas; and UNEXPECTED PRICE PACKAGE, the right price for target homebuyers starting at Bht 55,000-65,000/square metre. Two prime addresses are locked for Aspire Rattanathibet-Weston, which will be launched in September for a starting price of Bht 1.59 million and Aspire Pinklao-Arun Amarin, which will be launched later in the fourth quarter of the year.
“Each of us seems to be continuously swept in the wave of damage with COVID-19 at the centre. The new wave of outbreak proved that we still cannot really get away from this wave. For the property industry, the key to driving the business is the overall economy of the country. If the economy is good, the industry will follow suit. So will employment, purchasing power and consumer confidence,” said Mr. Vittakarn.
For the second half of the year, the company plans to launch a total of 26 new projects worth 33,440 million baht, 22 of which are low-rise projects worth 20,440 million baht, and 4 are condominium projects worth 13,000 million baht. It also has plans to transfer ownership in 2 new condominium developments: Life Ladprao Valley and Life Ladprao Asoke Hype, valued at a combined 12,300 million baht. As at 31 June 2021, the company had a backlog worth 40,552 million baht to support its long-term growth over the next three years.
“There are three noteworthy challenges for our real estate industry moving forward. The first one is the recovery of domestic consumer confidence, which depends largely on vaccinations. Secondly, we will have measures from the government that will help stimulate purchasing power after we have consumer confidence back. And lastly, we have the government’s reopening plan, which promises to bring back purchasing power that is a positive sentiment for the condominium market. These three factors will take time to make anything happen. When will today’s lowest ebb be over? No one has the answer. The business sector and every one of us will have to get prepared for countless waves similar to the one we are facing now,” added Mr. Vittakarn.
The company continues to carefully execute its business plans with resilience for cash flow management under the main mission to ‘EMPOWER LIVING’ to deliver good quality of life on customers’ terms with valuable and meaningful product and service innovations.