Mr. Witakarn Janthawimon, Deputy Managing Director of Corporate Strategy and Innovation at AP Thailand Public Company Limited stated that the economic outlook for 2023 is expected to be positive, especially with the reopening of the country to tourists, which will significantly boost domestic purchasing power and instill confidence in consumers to spend on goods and services. This will also benefit the real estate sector. However, businesses must adjust their strategies comprehensively as the real estate market still faces high challenges, with the company's loan rejection rate last year remaining at 15-20%, depending on the product segment.

In 2022, the company launched as many as 51 new projects worth over 63.6 billion baht, achieving net sales exceeding the target of 50.415 billion baht, representing a 44% growth from the previous year. This performance reflects the strength and readiness of the company's internal management, which has been a priority for many years.

AP Launches 58 New Projects Worth 77 Billion Baht and Prepares to Open 2 New Businesses

For 2023, the company is moving forward aggressively, planning to launch the largest number of new projects in the market, totaling 58 projects worth over 77 billion baht. This includes 22 single-family home projects valued at 34.8 billion baht, 27 townhome projects worth 26.4 billion baht, 4 condominium projects valued at 11.8 billion baht, and 5 projects in provincial areas worth 4 billion baht. This will result in AP having over 192 projects available for sale in both Bangkok and provincial areas, with a total value exceeding 165.6 billion baht, targeting sales of 58 billion baht and total revenue of 100% joint ventures at 57.5 billion baht.

We are confident that this year we will launch as planned with 58 projects, as we have already prepared the land for all new project openings. Additionally, we have set aside a budget of around 20 billion baht for land purchases this year to seek potential locations for product development, strengthening our position for 2024.

Moreover, in 2023, there are plans to open 2-3 new businesses as part of the strategy “HATCH NEW BUSINESS,” which aims to leverage expertise in the real estate sector by identifying new market gaps and nurturing new thinkers and creators within the company to develop new businesses that can support long-term holistic growth. Currently, this is still in the initial exploration phase.

Previously, the company successfully launched FitFriend, a delivery trainer service that meets health trends. Last year, FitFriend served over 6,000 classes, providing services to the general public through the Line Official-FitFriend system. Today, FitFriend has scaled up to become another service under the management of Smart Service and Management, catering to residents in over 370 projects.

Additionally, the company continues to drive social growth by committing to be an organization that prioritizes the development of 'people' by providing future skills to everyone, including employees, students, and disabled graduates, to support everyone in leading a better life through various ongoing social projects.

Townhome Group Launches Grand Pleno in the City Market with 27 Projects Highlighting “Urban Classy Homes in Ratchayothin Targeting Luxury Townhomes Priced 5-15 Million”

Mr. Metha Raktum, Deputy Managing Director of Business Development for the Townhome Product Group at AP Thailand Public Company Limited stated that in 2023, the townhome business group is preparing to launch 27 projects worth 26.4 billion baht, covering all 6 sub-brands with prices ranging from 1.69 to 25 million baht.

The focus will be on expanding the product portfolio in the twin house segment with the brand “Urban Classy THE EDITION,” as there is confidence that the twin house market can still grow well due to fewer players and no oversupply. The company has expertise in marketing twin houses and has carefully selected locations. This year, the design of the houses has been updated, and the common areas and clubhouses have been revamped to better meet user needs, with 3-story twin houses having a width of 12.8 meters. The GRANDE PLENO will feature 2-story twin houses with a width of 13.5 meters, and a luxury townhome is set to launch this year in the Urban Classy Ratchayothin area, expected to debut in the third quarter at prices ranging from 5 to 15 million baht.

However, the challenges for customers in the townhome segment must keep an eye on interest rate trends, which may pose risks affecting purchasing power, requiring close planning. The most interesting locations this year are primarily in Nonthaburi, Ram Inthra, Bang Na, and Rama 9.

Expanding the Single-Detached House Portfolio Targeting the Super Luxury Market

Mr. Ratchayut Nuntachotisophon, Deputy Managing Director of Business Development for the Single-Detached House Product Group at AP Thailand Public Company Limited stated that this year, the company is preparing to launch 22 new single-detached house projects worth 34.8 billion baht, aiming to capture market share in two segments: luxury single-detached houses priced between 20 and 50 million baht and super luxury single-detached houses priced between 50 and 100 million baht. The company will also upscale the luxury mansion THE PALAZZO to meet the needs of affluent customers. This year, the focus will be on locations in Ram Inthra, Bang Na, Ratchaphruek, Borommaratchachonnani, and the eastern region. The prices this year are expected to follow market mechanisms, with the company striving to minimize direct impacts on customers due to its advantage in advance product management.

“Nevertheless, both the townhome, twin house, and single-detached house markets in provincial areas can continue to grow. Single-detached houses in Khon Kaen are highly popular, selling out quickly, while townhomes in Chachoengsao and Ayutthaya are also in high demand,”

Condominiums Launch 4 New Projects Worth 11.8 Billion Baht Continuing Collaboration with Mitsubishi Estate Group

Ms. Kamolthip Bumrungchatiudom, Deputy Managing Director of Business Development for the Condominium Product Group at AP Thailand Public Company Limited stated that the overall condominium market in 2023 is expected to recover to levels close to pre-COVID-19. From the sales of AP's condominiums last year, there was a growth rate of over 4 times, amounting to 11.44 billion baht. This year, the condominium business group is preparing to launch 4 new projects worth 11.8 billion baht.

This includes 2 projects from the company worth a total of 3.8 billion baht, namely the Aspire Vibha-Victory and Aspire Kaset-Phahol 49 projects, which are expected to launch in the fourth quarter of 2023.

Additionally, 2 joint venture projects with Mitsubishi Estate Group worth over 8 billion baht include the Life Phahol Ladprao project, with an average price of 150,000 baht per square meter, which is currently 45% constructed and expected to launch in June 2023, with transfers in the second quarter of 2024, and the Rhythm project located near Icon Siam, expected to launch in the fourth quarter of 2023.

Currently, the total backlog stands at 19 billion baht, with 2.4 billion baht from the company and approximately 16.6 billion baht from joint ventures, which will gradually recognize revenue from 2024 to 2025.

Regarding the situation of foreign customers, the company has about 19% of this customer segment, with the majority being Chinese customers at 17% and Southeast Asian customers at around 2%. This year, there is an increasing trend of foreign customers transferring ownership.

Moreover, this year marks the 10th anniversary of the collaboration between AP Thailand and Mitsubishi Estate Group, during which they have jointly developed over 21 condominium projects worth nearly 100 billion baht. They continue to share the vision of promoting the development of Thai condominiums to better meet the inclusive living needs of everyone.

Additionally, this year, the condominium business group is preparing to deliver 4 ready-to-move-in condominiums worth over 16.2 billion baht, including the Prestige Lux segment condominium THE ADDRESS Siam-Ratchathewi, expected to be ready for delivery around the third quarter, and the Luxury segment RHYTHM Charoenkrung Pavilion, which has already opened for ownership transfer, along with 2 Aspire projects: ASPIRE Pinklao-Arun Amarin and ASPIRE Rattanathibet Weston, both of which are the first completed Aspire condominiums in a new concept.