AP Moves Forward Strongly, Showcases Backlog of Over 56.1 Billion, Expands into 5 Major Cities with 'APITOWN' Brand

  • Highlights the Superstar Horizontal Products of the Year, with plans to launch 26 new projects worth 26 billion baht
  • Introduces a new brand 'APITOWN' to penetrate provincial markets, emphasizing space design and safety innovations, starting in 5 provinces: Nakhon Si Thammarat, Rayong, Khon Kaen, Ayutthaya, and Chiang Rai, with prices ranging from 1.5 to 9 million baht
  • In the first half of the year, achieved sales of 15.085 billion baht, driven by positive customer sentiment; demand for condos remains strong due to the value of assets compared to other investment forms

AP Thailand continues to move forward as the market begins to recover with positive sentiment, believing that the demand for condos is still strong due to the value of assets compared to other investment forms. The horizontal products are highlighted as the superstar of the year, ready to move on according to the MASTERPLAN FOR TOMORROW, expanding the scope to create a blueprint for quality living by launching 26 new projects worth 26 billion baht, along with developing 'APITOWN', a new brand to penetrate provincial markets, starting in 5 provinces, and preparing to transfer 2 new condos: LIFE Asoke-Rama 9 and ASPIRE Asoke-Ratchada, growing steadily with a backlog of over 56.149 billion baht, recognizing revenue until 2023.

Mr. Witakarn Chantawimon, Deputy Managing Director of Corporate Strategy and Innovation at AP Thailand, stated, “The COVID-19 pandemic crisis is akin to the largest supernova in world history, causing impacts greater and more severe than any previous crisis. Over the past 6 months, the company has operated cautiously while adjusting plans to align with the situation at each moment, with EMPOWER LIVING as a key organizational goal. As a result, in the first half of the year, the company achieved total sales of 15.085 billion baht from launching 14 new horizontal projects worth 15.5 billion baht and from over 100 other projects currently for sale, with a remaining sales value of 70 billion baht, successfully transferring ownership of LIFE Ladprao, a joint venture condominium that was completed and began gradual delivery in March. We believe that the demand for condos is still strong due to the value of assets compared to other investment forms.”

In the second half of 2023, the company will continue to operate according to the MASTERPLAN FOR TOMORROW set at the beginning of the year, expanding the scope to create a blueprint for quality living to meet the increasing demands of Thai people through plans to launch horizontal projects in 5 provinces with the 'APITOWN' brand, totaling 4.7 billion baht, including Nakhon Si Thammarat, Rayong, Ayutthaya, Khon Kaen, and Chiang Rai, in a mixed product format (Mix Products) addressing housing needs in single houses, duplexes, and townhomes, with prices starting from 1.5 to 9 million baht. Additionally, there are plans to launch 21 new projects in Bangkok, including 8 single houses worth 7.97 billion baht and 13 townhomes worth 13.33 billion baht, totaling 26 new projects worth 26 billion baht in the second half of the year.

“APITOWN will be the brand name for products in provincial areas added to AP's portfolio, reflecting AP's intention to create and deliver a master plan for quality living for all Thais by combining two main strengths: 1. Leading in SPACE Design, where the house designs in each project will be tailored to meet the needs and behaviors of people in each province according to the Dynamic Personalized Model concept, and 2. Tech-Life Management, integrating technology into living spaces by installing selected innovations within the projects, which are innovations for managing safety within the community 24 hours a day, ensuring safety in all aspects of living within the housing estate through an intelligent platform. The first project will be launched at APITOWN Nakhon Si Thammarat, with pre-sales on September 26-27, and other projects in October,” Mr. Witakarn added.

For condominium products in the second half of the year, the company has new completed condominiums planned for delivery, including 2 projects: LIFE Asoke-Rama 9, valued at 9.8 billion baht, with a sales status of 94%, ready for delivery in August, and ASPIRE Asoke-Ratchada, valued at 2.9 billion baht, with sales at 95%, also ready for delivery in August. Additionally, the company has a backlog of condominiums awaiting revenue recognition over the next 3 years (until 2023) worth up to 42.915 billion baht. Regarding projects currently for sale, the company has 18 condominium projects with a remaining sales value of 21 billion baht, thus confident that despite the current situation causing short-term condo buyers to delay investment decisions, long-term investors still see the value of investing in real estate compared to other forms of investment. Although the company has postponed plans to launch new condominiums, all teams continue to work according to the original plan to ensure projects are ready for immediate launch if the situation in the fourth quarter improves or is supported by government measures.

“This impact is unlike any in the past; we will continue to face such volatility. Certainly, everything will not be the same. The interesting challenge is that today the term 'New Normal' we discuss is still occurring imperfectly. The crisis has not yet reached its conclusion, and we do not know what surprises await in the next 6 months. Therefore, to keep the business moving forward amid such difficult circumstances, in addition to the readiness of the people in the organization and cash flow management, a flexible business plan is the way to navigate this crisis. The projects under the AP brand already have a strong foundation, as reflected in the positive trends in project visits and sales. The horizontal projects are also experiencing continuous growth, along with the transfer of ownership of the LIFE Ladprao project that began in March. Therefore, we believe that the real estate market in the second half of the year will gradually improve and reach a balanced state soon,” Mr. Witakarn added.

In summary, the real estate business operation plan for 2023 as of July 14, 2023, indicates that the company will launch new projects worth a total of 41.5 billion baht, comprising 40 projects, including 18 single house projects worth 20.47 billion baht, 17 townhome projects worth 16.33 billion baht, and 5 provincial projects worth 4.7 billion baht. The company also has 18 condominium projects currently for sale, with a remaining sales value of 21 billion baht, aiming for total sales of 33.5 billion baht and total revenue of 100% from joint venture projects worth 40.55 billion baht, with 14 projects worth approximately 15.5 billion baht already launched in the first half of the year, achieving sales of 15.085 billion baht in the first half of the year.

In this year, the company has 4 completed condominium projects ready for delivery, with 2 already delivered in the first half of the year, including LIFE Ladprao worth 8 billion baht and ASPIRE Sukhumvit-On Nut worth 1.6 billion baht, and preparing to deliver 2 more projects in the second half: LIFE Asoke-Rama 9 worth 9.8 billion baht and ASPIRE Asoke-Ratchada worth 2.9 billion baht.

As of June 31, 2023, the company has a backlog of projects worth up to 56.149 billion baht, with horizontal projects valued at approximately 13.234 billion baht, expected to be fully recognized within this year, and condominiums worth 42.915 billion baht, with approximately 15.602 billion baht expected to be recognized this year, and the remainder to be recognized until 2023.