AP, Sammakorn prefer low-rise projects to condos

AP, Sammakorn prefer low-rise projects to condos

SET-listed developers AP (Thailand) Plc and Sammakorn Plc (SAMCO) will launch more low-rise residential projects this year in a sign of strong confidence in the property market.

AP chief executive Anuphong Assavabhokhin said the market will continue growing, driven by the government's investment in new mass transit lines.

It will launch 20 residential projects worth a combined 32.7 billion baht, comprising 15 single-house and townhouse projects worth 14.5 billion and five condominium projects worth 18.2 billion.

The new low-rise projects will be eight single-house estates worth 8.37 billion baht and seven townhouse projects worth 6.1 billion.

AP aims to achieve 31 billion baht in presales and 23.7 billion in revenue this year, up from 28.2 billion and 22.1 billion in 2015 respectively. Presales last year rose 24% from 2014 but revenue declined 4.6%.

Presales this year will be 14.5 billion baht from single detached houses and townhouses and 16.5 billion from condos. Revenue will total 13.8 billion baht from single houses and townhouses and 9.9 billion from condo transfers at 11 sites.

AP reported a net profit of 2.62 billion baht in 2015, rising from 2.61 billion in 2014, on revenue of 22.1 billion, down from 23.1 billion.

At the end of last year, AP had a sales backlog of 11.58 billion baht to be realised this year and next.

Sammakorn managing director Kittipol Pramoj Na Ayudhya said it would launch three projects worth a combined 4.4 billion baht, all single houses and townhouses.

"We will have no new condos this year as the condo market is not as good as expected amid the economic slowdown," he said. "Consumers and investors have a wait-and-see attitude on the economic situation."

Sammakorn launched its first condo project S9 in 2013 and it was completed last year. The eight-storey condo has 299 units worth 528 million baht left for sale.

The company targets to have 2.1 billion baht in both presales and revenue this year, up from 1.6 billion and 1.5 billion in 2015. Revenue last year was below the target of 1.8 billion baht, mainly due to the low rate of condo transfers.

It reported a net profit of 123 million baht on revenue of 1.5 billion in 2015.

AP shares closed yesterday on the Stock Exchange of Thailand at 5.70 baht, up 10 satang, in trade worth 51.4 million baht. SAMCO shares closed at 3.68 baht, down 2 satang, in trade worth 1.9 million baht.

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