AP Thailand, Thailand’s leading property developer on a mission to EMPOWER LIVING, is geared up to make more history for condominiums in the mass segment. While the pandemic lingers, there have been positive signs since the beginning of this year in the condominium market, which is picking up along with customer demand.
Initially, in the first half of the year, the company is scheduled to launch ASPIRE brand condominiums with new looks targeting urban young generations through the positioning of ‘LIVE AS YOU ASPIRE’, for those aiming to achieve freedom in every dimension of life.
Challenging every development limit, AP aims for ASPIRE to be the year’s best condominium in the mass segment. To achieve this, it will pitch three new selling points. Industry-first new unit layout design realises the best life space. Ideal-freedom is provided by common area. And the best-value final offer features a starting price of Bht 1.99 million.
Starting with pilot projects, the company will offer new developments in three prime city zones: Pinklao – Arun Ammarin, Ratchayothin, and Sukhumvit – Rama 4. All are great locations for travel, work and lifestyle.
The company will open a special round for customers to book the first project ASPIRE Pinklao – Arun Ammarin on 19 – 20 March. To make an appointment for a project tour, go to www.apthai.com.
“The company plans to launch five condominium projects this year worth a combined Bht 13,000 million,” said Ms. Kamolthip Bumrungchatudom, Chief Condominium Business Group, AP (Thailand) Public Co., Ltd. “Three of those developments, worth Bht 6,800 million, will be launched in the first half of the year. This will mark a great comeback of the ASPIRE brand with new looks and will be the highlight of the year.”
“AP has set a whole new development standard based on two years of studying and deciphering insights into the ever-changing lifestyle of our targeted young generation. The company found that the sentiment of condominium customers has improved continuously over the years, especially in terms of real demand from those who buy to live in the unit themselves.”
“Positive feedback is evident in AP’s recent condominium sales which stood at Bht 1,080 million as of 15 February 2022. This is despite no new projects being launched for a while. That’s a growth of over 250% compared to the same period of last year.”
“The planned launch of new-look ASPIRE will make a difference and offer the top choice for young-gen customers looking for new condominiums in city zones at highly affordable prices, starting at Bht 1.99 million.”
“We have positioned the brand ASPIRE under the ‘LIVE AS YOU ASPIRE’ slogan, meaning you will have freedom in every dimension of life. The aim is to make ASPIRE the best condominium in the mass segment through design thinking and project development. It will enable space-function design to unlock every restriction of modern condo living. A condo now is not just an abode for every space-function and experience. ASPIRE condos from now on will be fulfilling and advancing personal happiness with more relaxation and private life as well as work capability, the precise demands for which vary according to the specific target groups in each location.”’
This will be achieved by combining three new selling points:
1. Modular Layout – the best life space. For the first time ever, we offer 40 new unit layout designs with a focus on flexibility to ensure proportionate space and more freedom to move around for the resident as customer insights are answered with hybrid lifestyle
2. The Best ‘ME’ Space – ideal-freedom common areas. We offer functions that respond to our insight on the lifestyle and how those in real demand use spaces in each plot of land. In doing so, customers are delivered active relaxation with balanced privacy all at the same time.
3. Entry Level Price –package is surely the best offer. The new-look ASPIRE condos will unlock every freedom needed each day at each particular period of time so as to empower living in every aspect.
“We hope to get a good response from mass condo customers in all the locations we are preparing to sell,” added Ms. Kamolthip.
“The three prime locations we are preparing to offer our new ASPIRE condos in are full of opportunities with enormous numbers of real-demand customers. They are perfect for both living and renting out, ideal for travel, work and urban lifestyle.”
AP Thailand’s survey of the market for condos going five years back (2017-2021) found that:
(1) the market for condos in Arun Ammarin zone is good. It’s a prime location as the country’s foremost medical and education hub. It is also a rare location because land on Arun Ammarin of the size suitable for condo development is limited. ASPIRE Pinklao – Arun Ammarin will be the only new development out there. This is contrary to demand which is evident in consistent sales of up to 75% of the 11 projects on sale along the MRT Bang Yi Khan – Bang Khun Non – Fai Chai station. It also offers rental opportunities since the location should appeal to university students and healthcare workers. The rental rate in the last year stands at Bht 8,000 – Bht 15,000 a month with rental yield at 4.5-5%
(2) the market for condos within a 1.5-kilometre radius from BTS Ratchayothin is good. This is one of the top real-demand locations which cater to students and new-gen office workers given that it is surrounded by large-scale office buildings and leading universities. This is in addition to its proximity to the extended MRT Green Line (Mo Chit – Saphan Mai – Khu Khot) which, once in service, will be perfect for commuters coming in and going out of the city. It should make the market for mass condos in the area more robust. Ratchayothin will be prime for investment for both living and renting out in the future. AP Thailand’s survey of condo supply found that there are 15 projects with 9,024 units, 87% sold. The last three years have seen fewer projects launched. Prices for the units outstanding are Bht 125,000 – 150,000 per square metre. That’s not in line with what is sought by the market. The rental yield in the area is also good at 5%.
(3) the market for condos on Rama 4 – Sukhumvit zone within a 1.5-kilometre radius from BTS Phra Khanong is good. This location is at the heart of Bangkok’s Sukhumvit central business and lifestyle district. Here 76% of the 21 projects on sale are sold out. Given that the rental yield for condos in the area is around 5% a year, it’s no surprise to see that the market for condos around is consistently of great interest to customers.”
“We believe that the new-look ASPIRE will be the best condominium in the mass segment,” continued Ms. Kamolthip. “It will make a huge difference and set a new standard for condo living which reflects the industry best.”
“The need for freedom to live a life in all respects sought by customers will be completely met. It could be a different project proposition, a unit layout and design and common areas covering all the needs in modern condo living. It could also be the very reachable prices.”
“All this will enable us to reach more customers in the mass segment more. As such, when we roll out plans to sell the new ASPIRE, we expect a good response from customers in all locations.”
Meanwhile, presales is slated for the first half of the year onwards.
The first project ASPIRE Pinklao – Arun Ammarin – is in a rare location near Siriraj Hospital, MRT Bang Khun Non and Chao Phraya Pier where a shuttle service is provided to and from the project. One-bed units start at Bht 2.89 million and a special round of booking will be opened on 19 – 20 March.
This year, AP plans to launch five new condominium projects worth a total of Bht 13,000 million, up 65% from last year. Condominium sales for the whole year are projected at Bht 12,000 million with total revenues from condominiums (100% JV included) projected at Bht 12,300 million.
In the first half of the year, the company plans to launch three projects worth Bht 6,800 million. As at 15 February 2022, the company has 15 ongoing condo projects worth Bht 27,530 million in outstanding value and has a backlog of condos, including JV developments valued at Bht 18,300 million. Bht 1,500 million of this comprises AP condos which will have their revenues realised within this year and Bht 16,800 million comprises JV developments. The remainder of Bht 9,790 million will have revenues realised through to 2024. Revenues will be realised from transfer of ownership in three new condos, namely ASPIRE Erawan Prime, LIFE Sathorn Sierra and RHYTHM Ekkamai Estate, worth in total Bht 12,800 million.
AP Thailand enjoyed great success in 2021 as it became the industry leader with a mission to EMPOWER LIVING. The company enjoyed record growth of revenues with total turnover from low-rise products and condominiums (100% JV) at Bht 40,015 million. Net profit in 2021 stood at Bht 4,543 million, a growth of 7.5%. The results testified to the company’s organic strength and resilience, especially its readiness to adapt quickly to deliver good quality of life to customers on their terms. It also reflected consumer confidence and readily available purchasing power.
“This year the market for condos will continue to adapt to fast changing consumer behaviours. We have detected increasingly improving real-demand signs among customers in the middle to lower middle segment who are looking for new city-zone condos and we have seen many developers joining the competition in the segment.”
“Companies that make accurate decisions, choose the right plot of land, respond to next normal lifestyles to develop the right project at the right price will have the competitive advantage and will definitely receive a good response from customers,” Ms. Kamolthip concluded.
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