AP Drives at Full Throttle, Booking ฿56Bn of Backlog with 26 New Projects by Year End!

AP (Thailand) Public Company Limited (AP) has stated that the company is moving forward after the market has started to pick up with positive consumer sentiment. The company believes there still remains plenty of demand for condominiums considering the properties having better value for money than other forms of investment. Low-rise products are seen as superstars of the year as the firm moves on along a roadmap known as the Masterplan for Tomorrow while expanding the scope in creating a blueprint for quality living by launching 26 new projects worth THB 26,000 million and creating a new brand called ‘API TOWN’ to penetrate the upcountry starting with five pilot provinces. The company is set to transfer ownership of two new condominiums Life Asoke – Rama 9 and Aspire Asoke – Ratchada as it grows on solid footing with more than THB 56,149 million of backlog to be realized through to 2023.

 

Mr. Vittakarn Chandavimol, Chief Corporate Strategy and Creation of AP, said “the COVID-19 pandemic is comparable to the biggest supernova in the history of the world, having a bigger and more serious impact than any crisis in the past. Over the last six months, the company has exercised caution in its operation and has adapted to situations in each period with the main corporate goal to EMPOWER LIVING.

As a result, in the first half of the year, the company had posted presales of THB 15,085 million from its launch of 14 new low-rise projects worth THB 15,500 million as well as over 100 ongoing projects with THB 70,000 million in outstanding value. It also found success with the transfer of ownership in Life Ladprao – a joint venture condominium project, completely built and gradually delivered since March. We believe that the market still has a demand for condominiums whose value for money is better than other forms of investment.”

For the second half of 2020, the company will continue to follow its roadmap along its Masterplan for Tomorrow laid out early this year. The masterplan calls for expanding the scope in creating a blueprint for quality living to cover more needs of Thai people. It will do that by launching THB 4,700 million worth of low-rise projects under ‘API TOWN’ brand in five provinces, namely Nakhon Si Thammarat, Rayong, Ayutthaya, Khon Kaen and Chiang Rai. They will be mixed products to meet a demand for residences in the form of single-detached home, duplex home and townhome at a price of THB 1.5 million – THB 9 million.

For Bangkok, the company plans to launch 21 new projects, of which 8 are single-detached home projects worth THB 7,970 million and 13 are townhome projects worth THB 13,330 million. In total, it will launch 26 new projects worth THB 26,000 million in the second half of the year.

 

“API TOWN is our brand for products offered to homebuyers upcountry – a new addition to AP’s portfolio. It represents our intention to create and deliver a masterplan for quality living for all Thai people by combining the company’s two main strengths, which are 1. The fact that we are leading in SPACE Design. Residences in each project will be designed in response to the needs and behavior of people in individual provinces along with our Dynamic Personalized Model concept 2. Tech-Life Management. KATSAN innovation will be put in place inside our projects to manage security matters 24 hours a day. The innovation will screen and monitor all aspects of security in each project using an intelligent platform. It will come embedded for the first time at API TOWN Nakhon Si Thammarat project, whose presales are slated for 26-27 September, then in other projects in October,” said Mr. Vittakarn.

 

For condominium products, in the second half of 2020 the company has two new condominium projects which have been completed and are being delivered. They are Life Asoke – Rama 9 worth THB 9,800 million, 94% sold with deliveries slated for this August; and Aspire Asoke – Ratchada worth THB 2,900 million, 95% sold with deliveries scheduled for this August. The company also has up to THB 42,915 million worth of backlog for condominiums to be realized over the next three years (through to 2023). For ongoing projects, it has 18 condominium projects worth THB 21,000 million in outstanding value. While the current situation may possibly make condominium buyers reluctant to make short-term investment, the company is confident that those buying for long-term investment will still find investing in residential properties a better value for money than other forms of investment. While AP has put off the launch dates for new condominium projects, all its staff members have continued to follow its original plans to make sure that all projects are ready to launch once the situation improves or there is government support in the fourth quarter of the year.

 

“The impact is unlike anything in the past. We are still living with uncertainty. Nothing remains the same. One interesting challenge is that, today, the New Normal we are talking about has not yet come full circle. The crisis is far from over. You don’t know if any surprise would come up over the next six months. To ensure we keep our business going in these difficult times, apart from the readiness of our people and cash-flow management, business resilience is key to getting us through this crisis. Over the years, projects under AP brands have been on solid footing as you can see from the charts showing positive signs of sales and project visits. We have seen constant growth for our low-rise projects while ownership transfer for Life Ladrao which began in March. So we believe that the property market in the second half will keep improving and will get back to its equilibrium in a short time,” Mr. Vittakarn added.

 

For its business plan for 2020, as at 14 July. This year, AP Thailand has launched 40 new projects worth 41,500 million, of which 18 are single-detached home projects worth THB 20,470 million and 17 are townhome projects worth THB 16,330 million and 5 are upcountry projects worth THB 4,700 million. The company has 18 ongoing condominium projects worth THB 21,000 million in outstanding value. Presales are projected at THB 33,500 million and total revenues (100%) for joint venture projects are projected at THB 40,550 million. A total of 14 projects worth THB 15,500 million have been launched in the first half of the year. Their presales stood at THB 15,085 million.

 

This year the company has four completely-built condominium projects awaiting deliveries. It began delivering in the first half of the year Life Ladprao worth THB 8,000 million and Aspire Sukhumvit – Onnut worth THB 1,600 million. It is planning to deliver in the second half of the year two more projects, namely Life Asoke – Rama 9 worth 9,800 million and Aspire Asoke – Ratchada worth THB 2,900 million.

As at 31 June 2020, the company had a backlog of THB 56,149 million for all projects, including joint ventures, of which low-rise projects account for THB 13,234 million which is expected to be realized in whole within this year and condominiums account for THB 42,915 million. It will be realized this year for THB 15,602 million, while the remainder will be realized through to 2023.