Bangkok (April 10, 2019) – AP (Thailand) Public Company Limited the leader in real estate development and residential innovation is pleased with the first quarter sales results1, with strong demand for both low-rise and high-rise products totaling over 12.585 billion baht, allowing the company to achieve 30% of its sales target for the year 2019, set at 41.8 billion baht confident that in the second quarter the mid to high-end real estate market will continue to see good demand  as it prepares to launch a total of 13 new projects worth 19.72 billion baht

 

 

          Mr. Witakarn Janthawimon Deputy Managing Director of Corporate Strategy and Innovation at AP (Thailand) Public Company Limited revealed that the real estate market in the first quarter is showing good growth, with strong purchasing power in the real estate business for both low-rise and high-rise products, as reflected in the company's total sales of over 12.585 billion baht, consisting of sales from condominiums worth 6.365 billion baht and low-rise products worth 6.220 billion baht, an increase of over 25% compared to the same period last year, which was 10.016 billion baht  this is a satisfactory performance, considering that it was a quarter where the company had few new projects launched resulting in the company achieving 30% of its sales target for the year 2019 (sales target of 41.8 billion baht) AP is preparing to continue its market push in the second quarter by launching a total of 13 projects worth 19.72 billion baht, including 9 townhome projects worth 8.56 billion baht, 3 single-family home projects worth 2.36 billion baht, and 1 condominium project worth 8.8 billion baht.

          The key success factors driving AP's first quarter sales are understanding demand in each location having a diverse range of products, and the ability to manage affordable pricing packages, resulting in positive responses from both low-rise and high-rise products especially the single-family home projects under the brands THE CITY and CENTRO which are key drivers for overall sales growth. Additionally, other projects of AP, such as townhomes and condominiums, have shown continuous sales growth, such as  completed condominiums ‘Aspai Erawan’ with a sales growth rate of over 130% compared to the same period last year  while the newly launched project in the first quarter, ‘Rhythm Ekkamai Estate’ has also received a good response from urban customers, with the main factors that customers prioritize and decide to purchase being the new living experience that makes living in a condominium feel as private as living in a house. In terms of ‘Aspai’ both locations, namely ‘Aspai Sukhumvit – On Nut’ and ‘Aspai Asoke – Ratchada’ launched in the first quarter, have received positive responses from both Thai and foreign customers, especially ‘Aspai Asoke – Ratchada’ which quickly sold out during the pre-sale period with a total of 1,025 units worth 2.5 billion baht. All of this reflects the demand in the real estate market and the confidence of consumers in AP's products,” Mr. Witakarn added.

 

          “In terms of the overall real estate market in the second quarter, AP believes that the demand for new housing will continue, even though the LTV measures will be enforced, but we are confident that it will not affect the market overall,”  at the same time, the advantages of the measures will help real demand customers access housing products at reasonable prices more easily and will also help manage the overall real estate business in the long term effectively. Therefore, the company continues to operate according to the plan announced at the beginning of the year, which is a long-term strategy focusing on understanding demand in each location to develop and deliver differentiated products by penetrating every segment with a complete launch of all 9 brands under the delivery of quality living and lifestyle for Thai consumers sustainably in the second quarter, AP is preparing to launch new products totaling 13 projects, consisting of 12 low-rise projects worth 10.92 billion baht and 1 condominium project worth over 8.8 billion baht,” Mr. Witakarn concluded.

 

          As of March 31, 2019, the company has a backlog of projects worth up to 58.96 billion baht, consisting of low-rise projects worth 11.14 billion baht, which is expected to be recognized in full within this year, and condominiums including joint venture projects worth 47.82 billion baht, divided into AP condominiums worth 6.53 billion baht, which will be gradually recognized this year at approximately 3.395 billion baht, and joint venture condominiums worth 41.29 billion baht, which will be recognized this year at approximately 7.75 billion baht, with the remainder to be gradually recognized until 2023.

          In summary, the overall business operation plan for real estate in 2019, AP plans to launch a total of 39 new projects worth approximately 56.8 billion baht, divided into 5 condominium projects worth 22.4 billion baht and 34 low-rise projects worth 34.4 billion baht, targeting sales of 41.8 billion baht and total revenue of 35.9 billion baht (100% JV).

           “AP (Thailand) dares to be different for the best quality of life for Thais”

 

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