AP Thailand announces record Bht 41 billion sees next years market dominated by mid-to-high end products

Real Estate Press Releases Monday December 18, 2017 18:20
Bangkok--18 Dec--AP Thailand

AP Thailand announced record presales of Bht 41,600 million in 2017, 85% higher than previous year, thanks to robust sales of its low-rise developments as well as a revival of its Life brand condominium projects in three prime locations: Wireless, Ladprao and Asoke-Rama 9. AP attributes its unprecedented success to its strengths in four areas: location, products that hit the right notes with consumers, winning price package and outstanding supplies. The company predicts that the middle to high-end sectors in the property market will experience great supplies next year, while low-rise projects will continue to be of note. For condominiums, AP says the key to success lies in detailed segmentation.

According to Mr. Anuphong Assavabhokhin, Chief Executive Officer of AP (Thailand) Public Company Limited, this year (as at 15 December 2017), the company has been hugely successful with total presales of condominiums, and low-rise products recorded at Bht 41,600 million, a new annual record. This is a 85% growth on the same period of last year and 60% higher than projected presales of Bht 26,000 million. Low-rise developments account for Bht 14,525 million of the presales and condominiums account for Bht 27,075 million. The factors contributing to the jump in presales this year, in addition to a steady growth of low-rise products, namely single detached houses and townhomes since the beginning of the year, is the successful launch of three Life-branded condominium projects namely Life Ladprao, Life Wireless and Life Asoke-Rama 9 which, altogether, closed 90% of sales. More than 80 ongoing projects also attributed to this year's success.

The leap in growth reflects AP's successful approach to property development which takes into account four key areas 1) location 2) products that meet latent consumer needs 3) price packages that respond to customers' mortgage payment ability and 4) the study of outstanding supplies in each segment to design product models and prices that accurately understand and meet consumer needs.

"We realise that consumer behaviour these days is rapidly changing and is more complicated. One of the strategies that make AP products successful among buyers is its mass customized design appeal. Under this unusual concept, we allow our customers to have a say in the design. Under the options offered, we determine, customers adjust, expand and reduce functional spaces as they see fit. Our designers will build based on the customer's preferences to ensure that the final product have the functions that respond to the different needs of customers in individual areas. Under this concept, we presently have more than 70 designs of low-rise houses to meet different customer needs across 60 single detached house and townhome projects around Bangkok. We will not stop innovating designs for good living in the future," said Mr. Anuphong.

Moreover, throughout the past four years, the company has received good cooperation from its business partner Mitsubishi Estate Group (MEC) which has channeled its quality management concept into a major framework for building a good quality of life in the design and development of AP condominiums. We not only combine industry experiences with modern technology, particularly the Internet of Things, we also introduce modular building innovations, such as in the zero-defect modular bathroom.

In 2017, AP and Mitsubishi Estate Group became the first and only business alliance to pursue a different joint venture model in Thailand by establishing a parent firm with a huge registered capital of Bht 6,100 million to manage their joint venture projects, under the Premium Residence Co., Ltd. The Japanese partner also posted its team of expert in Thailand to work with the AP team.

For condominiums under the joint venture between AP (Thailand) and Mitsubishi Estate Group (MEC), there are 11 projects worth over Bht 50,830 million with average presales standing at 85%. Four projects of these have been completed and ready to move in. They are (1) RHYTHM Sukhumvit 36 – 38 (2) ASPIRE Ratchada – Wongsawang (3) ASPIRE Sathorn – Thapra and (4) RHYTHM Asoke 2. Ownership transfer at these four projects has exceeded expectations. In 2018, AP and Mitsubishi Estate Group will continue to work together to provide the public with more condominium design innovations.

The company expects the property market in 2018 to be in line with the country's economic growth. Industry competition will continue to be concentrated among the major players who will adapt their strategies to suit economic circumstances. Supplies in the middle to high-end segments will continue to be well accepted by consumers with continuing high purchasing power. Launches of low-rise products will continue to be of special note. Meanwhile, the situation will be quite worrisome for low-end condominiums due to the glut in supplies of completed projects. The emerging role of technology is another challenge that the real estate industry will have to contend with to understand and keep abreast of the future needs of their target customers.

In 2017, the company launched a total of 25 new projects worth Bht 49,040 million, of which 9 are single detached house projects worth Bht 12,350 million, 13 are townhome projects worth Bht 12,590 million, and 3 are condominium projects worth Bht 24,100 million. Presales for the year were projected at Bht 26,000 million. As at 15 December 2017, the company has been successful with total presales of condominiums, and low-rise products recorded at Bht 41,600 million, a new annual record. This is a 85% growth on the same period of last year and 60% higher than projected presales of Bht 26,000 million. Low-rise developments account for Bht 14,525 million of the presales and condominiums account for Bht 27,075 million.


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