(Head Office) -- AP Thailand surprises the real estate market by showcasing a new sales record of 60 soaring to 41.6 billion baht an increase of 85% from the previous year, driven by continuous sales of horizontal products, including the revival of the LIFE CONDO brand in three prime locations: Witthayu, Ladprao, and Asoke-Rama 9. The successful formula for real estate development connects four dimensions: location, appealing products, pricing packages, and remaining supply. The real estate market forecast for next year indicates that supply for mid-range and high-end products will continue to perform well, with horizontal products being particularly noteworthy, while condominiums need to be targeted by specific segments.

          Mr. Anupong Asavaphokin, CEO of AP (Thailand) Public Company Limited, stated that this year (as of December 15, 2017), AP Thailand has achieved significant success, generating total sales of both condominium and horizontal products amounting to 41.6 billion baht, marking a new record high, growing over 85% from the same period last year and exceeding the original sales target of 26 billion baht by 60%. The sales breakdown includes horizontal products valued at 14.525 billion baht and condominiums at 27.075 billion baht. The factors contributing to the company's remarkable sales growth this year stem not only from the continuous growth of horizontal products, including single houses and townhomes, but also from the successful launch of three LIFE condominium projects: LIFE Ladprao, LIFE Witthayu, and LIFE Asoke-Rama 9, which collectively achieved approximately 90% sales closure, along with over 80 ongoing projects that significantly contributed to this success.

          This remarkable growth reflects the success of AP's real estate development approach, which integrates four dimensions: 1) location, 2) products that meet latent consumer needs, 3) pricing packages that align with payment capabilities, and 4) studying the remaining supply in each segment to design product models and pricing that accurately understand and meet customer demands.

          “We understand that consumer behavior is rapidly changing and becoming increasingly segmented and complex. One of the strategies that has led to AP's success is working under the concept of mass customized design, allowing customers to participate in the design process within the options we provide. Customers can adjust, expand, or reduce their usable space as desired. Designers then develop these requirements into products with functionalities that cater to the diverse needs of customers in each area. Currently, we have over 70 different designs of horizontal houses spread across 60 single house and townhome projects throughout Bangkok, and we continue to innovate designs for better living in the future,” Mr. Anupong added.

          Additionally, over the past four years, the company has received excellent cooperation from Mitsubishi Estate Group (MECG), a business partner, in transferring quality management concepts to create a framework for improving quality of life in developing AP condominiums by integrating real estate development experience with modern technology applications, especially regarding IoT (Internet of Things) concepts and modular construction innovations, such as prefabricated bathrooms that achieve zero defect rates.

          In 2017, AP and Mitsubishi Estate Group also became the first and only partners in the business with a unique joint venture model for real estate development in Thailand by establishing a parent company in Thailand with a registered capital of 6.1 billion baht under the name “Premium Residence Company Limited” to manage projects under the joint venture. Mitsubishi Estate sent a specialized team from Japan to work closely with the AP team.

          For the condominiums under the joint venture between AP (Thailand) and Mitsubishi Estate Group (MECG), there are a total of 11 projects with a combined value of over 50.83 billion baht, averaging 85% sales closure. Completed projects ready for occupancy include: (1) RHYTHM Sukhumvit 36 – 38, (2) ASPIRE Ratchada – Wongsawang, (3) ASPIRE Sathorn – Thapra, and (4) RHYTHM Asoke 2, all of which have exceeded the targeted transfer of ownership. In 2018, AP and Mitsubishi Estate Group will continue to collaborate on creating innovative designs for condominiums.

          Looking ahead to the 2018 real estate market, the overall business is expected to align with the country's economic growth. Competition will primarily come from major operators adjusting their strategies to align with economic conditions. Supply that meets the needs of the mid-range and high-end markets will continue to receive positive responses from consumers. The launch of new horizontal products remains a market to watch, while condominiums targeting the mid to high-end market still have purchasing power. However, the lower-end market is concerning due to a large stock of completed units remaining. The influx of technology presents another challenge for real estate developers who must adapt accordingly. Emerging technologies provide opportunities to better understand and connect with customers. Ultimately, operators must discover what their target customers are looking for in future living.

          In summary, in 2017, the company launched a total of 25 new projects worth a combined 49.04 billion baht, comprising 9 single house projects valued at 12.35 billion baht, 13 townhome projects valued at 12.59 billion baht, and 3 condominium projects valued at 24.1 billion baht. As of December 15, 2017, the company achieved total sales of both condominium and horizontal products amounting to 41.6 billion baht, marking a new record high, growing over 85% from the same period last year and exceeding the original sales target of 26 billion baht by 60%, with horizontal products valued at 14.525 billion baht and condominiums at 27.075 billion baht.

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