AP aiming for B57.5bn in revenue
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AP aiming for B57.5bn in revenue

Vittakarn: Strong demand to continue
Vittakarn: Strong demand to continue

SET-listed developer AP Thailand plans to launch 58 new projects this year worth a combined 77 billion baht, the highest in the industry, with a target of 58 billion baht in presales and 57.5 billion in revenue.

Vittakarn Chandavimol, chief of corporate strategy and creation, said the majority of the launches remain in the low-rise house category as strong demand is expected to continue in 2023.

"We saw a good sign of economic recovery and a strong growth of the housing market in 2023 with key drivers including a rebound of the tourism industry and a domestic consumption," he said.

AP's new launches in 2023 will reach a new high again after it launched 51 projects worth a combined 63.6 billion baht last year, which was the largest in terms of the number and value launched by the firm since its establishment in 1991.

It is also expecting to have 58 billion baht in presales, a new record high and an increase of 15% from 50.4 billion baht in 2022 which was up by 44% from 2021.

Presales in 2022 from low-rise houses stood at about 39 billion baht, up 23%.

Presales from condo last year was 11.4 billion baht, five times higher than the 2.2 billion recorded in 2021 which fell from 3.8 billion in 2020 and 14.4 billion in 2019.

The new projects in 2023 comprise 22 sites of single detached houses worth 34.8 billion baht, 27 townhouse projects worth 26.4 billion, four condo projects worth 11.8 billion and five low-rise projects worth 4 billion in the provinces.

An artist's interpretation of The City Charan-Pinklao.

"To support the large number of new launches, we need to enter new market segments we didn't have last year, such as single detached houses priced at 3-5 million baht and those priced at 50-100 million a unit," said Mr Vittakarn.

Of the four new condo projects, two -- worth 8 billion baht -- will be joint ventures with Japanese real estate firm Mitsubishi Estate Group, which partnered with AP 10 years ago.

During 2014-22, both firms developed a total of 21 condo projects worth 103 billion baht with a combined 21,300 units.

They have launched new condo projects every year except in 2020 due to the pandemic.

"Mitsubishi has strong confidence in the Thai property market. Since the first project, the partner has never withdrawn their investment and revolved the investment with us every year since 2018," he said.

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