AP lines up 65 projects worth B78bn

SET-listed developer AP Thailand plans to launch 65 new projects worth a combined 78 billion baht this year, the largest tally in the market, with units priced from 1.8 to 50 million baht.

Vittakarn Chandavimol, chief of corporate strategy and creation, said the new projects will be backed by its healthy financial status and a low net debt-to-equity ratio of 0.58 times as of the end of 2021. Last year the company closed 20 projects, exceeding its tally of 19 new launches.

AP spent 16 billion baht in 2021 to buy new plots of land for residential development, exceeding its target of 12 billion baht.

"Despite many challenges including the pandemic, a higher inflation rate and cost of development, housing demand remains strong, particularly for low-rise houses," he said. "The condo market is gradually picking up, but will not be hot as the past."

Of the new launches this year, 55 projects worth 60.8 billion baht are low-rise houses, comprising 29 townhouse projects worth 25.2 billion and 26 single detached house projects worth 35.6 billion.

Five low-rise projects worth 4.2 billion baht are slated for the provinces, including Udon Thani, Ubon Ratchathani and Chachoengsao, as well as five condo projects worth a combined 13 billion baht.

Three high-rise condo projects worth 10 billion baht are joint ventures with Japanese developer Mitsubishi Estate, a co-investor with AP for nine years. Their locations are Rama IV, On Nut and Lat Phrao.

Two condo developments are low-rise projects with three to eight storeys each as AP wants to realise revenue within one year.

The company aims to have 50 billion baht in presales and 47 billion in revenue by the end of 2022, up from 35 billion in 2021, a gain of 10.7% from 2020.

Revenue last year was expected to total 40 billion baht, with 71% stemming from low-rise houses.

"The performance last year was based on our balanced portfolio, cash flow management and digital competency, as we spent 200 million baht on digital transformation," said Mr Vittakarn.

He said low-rise unit prices will range from 1.89 million to 50 million baht this year.

New low-rise housing projects will tap younger buyers in Bangkok's neighbouring provinces, said Mr Vittakarn.

For the townhouse segment, the company plans to launch 20 new housing designs under six brands, while single detached house units priced from 3 million baht to tap younger buyers.

"The market in the first half of 2022 will remain unchanged from last year, but we expect it will improve in the second half as people become familiar with a new way of life with a pandemic and an economic recovery kicks in," he said.