AP ahead in full swing, showing backlog at over 56,100 million
published : 14 Jul 2020 at 19:03
Set to make strong presence in 5 major cities with ‘API TOWN’ brand
AP Thailand is moving forward after the market has started to pick up with positive consumer sentiment. The company believes there still remain 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 Bht 26,000 million and creating a new brand called ‘API TOWN’ to penetrate the upcountry market 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 Bht 56,149 million of backlog to be realised through to 2023.
Mr. Vittakarn Chandavimol, Chief Corporate Strategy and Creation, AP (Thailand) Public Co., Ltd., 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 posted presales of Bht 15,085 million from its launch of 14 new low-rise projects worth Bht 15,500 million as well as over 100 ongoing projects with Bht 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 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 earlier 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 Bht 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 Bht 1.5 million – Bht 9 million. For Bangkok, the company plans to launch 21 new projects, of which 8 are single detached home projects worth Bht 7,970 million and 13 are townhome projects worth Bht 13,330 million. In total, it will launch 26 new projects worth Bht 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 behaviour of people in individual provinces along with our Dynamic Personalised 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 Bht 9,800 million, 94% sold with deliveries slated for this August; and Aspire Asoke – Ratchada worth Bht 2,900 million, 95% sold with deliveries scheduled for this August. The company also has up to Bht 42,915 million worth of backlog for condominiums to be realised over the next three years (through to 2023). For ongoing projects, it has 18 condominium projects worth Bht 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 better value for money than other forms of investment. While AP has put off the launch dates for new condominium projects, all its staff have continued to follow its original plans to make sure that all project 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 there will be any more surprises 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 of our low-rise projects while ownership transfer for Life Ladrao 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 Bht 20,470 million and 17 are townhome projects worth Bht 16,330 million and 5 are upcountry projects worth Bht 4,700 million. The company has 18 ongoing condominium projects worth Bht 21,000 million in outstanding value. Presales are projected at Bht 33,500 million and total revenues (100%) for joint venture projects are projected at Bht 40,550 million. A total of 14 projects worth Bht 15,500 million have been launched in the first half of the year. Their presales stood at Bht 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 of Life Ladprao worth Bht 8,000 million and Aspire Sukhumvit – Onnut worth Bht 1,600 million. In the second half of the year it is planning to deliver two more projects; Life Asoke – Rama 9 worth 9,800 million and Aspire Asoke – Ratchada worth Bht 2,900 million.
As at 31 June 2020, the company had a backlog of Bht 56,149 million for all projects, including joint ventures, of which low-rise projects accounted for Bht 13,234 million all of which is expected to be realised within this year while condominiums account for Bht 42,915 million of which Bht 15,602 million will be realised this year while the remainder will be realised through 2023.