At the beginning of the year, many real estate companies have been announcing their performance results and future strategies. However, one brand that stands out with a New High Record and is clearly ready to dominate the single-detached house segment is AP Thailand, which has gathered its top executives from various product lines, including strategy, single-detached houses, townhomes, and condominiums, to showcase their successes throughout 2022.

Key Drivers for the Detached House Market with 3 Important Work Pillars

The industry value exceeds 77 billion baht, marking the highest figure ever launched by AP. A closer look reveals that AP places significant importance on penetrating the single-detached house market, as nearly half of the total project value comes from the single-detached house business, amounting to 34.8 billion baht (22 projects).

"The single-detached house business continues to move forward with new project launches at an increasing rate, both in terms of project value and the number of projects. This year is set to be the year with the most single-detached house launches ever for AP, along with plans to expand the portfolio to increase market share in the Modern Luxury segment through the brand THE CITY and to penetrate the Super Luxury market, focusing on locations in Ram Inthra, Bang Na, Ratchaphruek, and Borommaratchachonnani," said Ratchayut Nuntachotisophon, Deputy Managing Director of the Single-Detached House Business Development Group at AP Thailand, highlighting the overall expansion of AP's single-detached house market.

The key factors that empower AP to boldly pursue a full-scale single-detached house strategy stem from several reasons. Ratchayut analyzed that the main factor comes from the positive customer response from the previous year and AP's readiness to dive deeper into the single-detached house market, driven by confidence in three core working pillars:

1. Product Offering: AP excels in space and pricing packages. This includes not only the design of usable space within the houses but also consideration for the facility space within the project area. Additionally, there is tailor-made design for each segment and location to meet customer lifestyles. While AP may not offer the lowest prices in the area, it confidently presents prices that customers find most valuable, ensuring that every square meter is designed for practical use, which has become a competitive advantage.

2. Market Expansion: With a considerable number of projects across almost every location, AP provides customers with a wide range of choices. Currently, all of AP's single-detached house projects offer over 41 options spread throughout Bangkok and its vicinity (excluding projects that are about to close).

3. Market Penetration: AP has plans for continuous growth and portfolio expansion by broadening the product segments to cover more customers. For example, last year, AP launched a new line of single-detached house projects called MODEN to target customers in the 3-5 million baht range.

Considering all these factors, along with the past success in 2022, the single-detached house business group at AP achieved sales of 20.847 billion baht, growing 10% from the previous year and 120% compared to 2019, demonstrating continuous growth.

Expanding into the Super Luxury House Segment

In 2023, a key highlight for AP in the single-detached house and horizontal housing market will be to capture market share in two segments: Luxury single-detached houses priced between 20 - 50 million baht and Super Luxury single-detached houses priced between 50 - 100 million baht. AP is preparing to launch THE CITY, a new model of single-detached houses with land sizes ranging from 100-127 square wah and usable areas of approximately 386-560 square meters across three projects, set to be available for sale in the first quarter:

  • THE CITY Charan-Pinklao: 58 units, project value 1.35 billion baht, featuring English-style houses with attic options available in 4 models, expected to launch by the end of February.

  • THE CITY Pinklao-Borom 3: 68 units, project value 1.42 billion baht, with 3 models in Modern Classic style.

  • THE CITY Sukhumvit-On Nut 2: 64 units, project value 1.38 billion baht.

Additionally, this year, the single-detached house business group will seek opportunities to develop single-detached house projects in urban locations, aiming to launch urban houses, single-detached houses of 4 - 5 stories, following the successful launch of the urban house project in Sathorn-Rama 3 in 2021. They also plan to upscale the Super Luxury House segment with the luxurious mansion THE PALAZZO to cater to affluent customers, as they see that there are few players in this segment and high sales potential, presenting an opportunity for AP to expand its market share.

New High Record Breaking Through All Limitations

Summarizing AP's success in 2022, it is evident that the year marked a New High Record as it can be said that 2022 was the best year for AP in creating various breakthrough records, achieving three New High Records:

1. In 2022, AP launched a total of 51 new projects with a combined value of over 63.6 billion baht. This is the highest number of launches ever and represents a growth of 182% compared to the previous year (2021).

2. In 2022, AP achieved a net sales figure of 50.415 billion baht, representing a growth of 44% compared to the previous year (2021), with 38.975 billion baht from horizontal housing and 11.4 billion baht from condominiums. This indicates that the horizontal housing market still has growth potential, and it was another year where AP's condominium business reached over 10 billion baht again after a slowdown during the COVID period.

3. A significant increase in the transfer of ownership is expected to exceed the set targets.

These operational results reflect the strength and readiness that have arisen from the internal management of the organization that AP has prioritized over the years.

2023 Launching a Record 58 Projects Worth 77 Billion Baht

Entering 2023, AP reveals plans for extraordinary new projects, confident in the overall real estate market that is clearly recovering. A total of 58 new projects are set to launch, valued at approximately 77 billion baht, including 22 single-detached house projects worth 34.8 billion baht, 27 townhome projects worth 26.4 billion baht, 4 condominium projects worth 11.8 billion baht, and 5 projects in provincial areas worth 4 billion baht.

"The overall Thai economy this year shows positive signs, with many businesses starting to recover. Although there are still negative factors to face, it is believed that positive factors in tourism and domestic consumption will stimulate a good economy. In the real estate business, if we look at the graph of new project launches last year, we can see that the graph is starting to trend upwards, reflecting a recovering market. Therefore, we are confident that the real estate market this year will be bright and continue to drive forward," said Witakarn Janthawimon, Deputy Managing Director of Corporate Strategy and Innovation at AP Thailand, discussing the optimistic economic outlook, which is part of why AP aims to move forward vigorously.

Preparing to Launch 27 New Townhome Projects & 4 Condominiums

In addition to the single-detached house business, AP continues to plan to expand into the townhome and single-detached house markets. The townhome business aims to dominate the twin house market in the city by launching new 3-story and 2-story twin houses with a wide frontage of up to 13.5 meters, aiming for continuous growth under the Unlock Vertical Life roadmap, offering customizable vertical living spaces. They plan to launch 27 new townhome projects valued at 26.4 billion baht, covering all 6 sub-brands with price ranges from 1.69 to 25 million baht. A key highlight is the expansion of the product portfolio in the twin house segment with the THE EDITION brand, a 3-story twin house with a maximum width of 12.8 meters, and GRANDE PLENO, a 2-story twin house with a width of 13.5 meters, emphasizing the strategy of launching Duplex Homes (2-3 story twin houses) and Luxury Townhomes located more centrally, with new locations this year including the Classy Urban House in Ratchayothin priced at 15-25 million baht, expected to launch around the third quarter.

For the condominium business, which is showing clear positive signals, AP plans to deliver 4 ready-to-move-in condominiums valued at over 16.2 billion baht. This includes condominiums in the Prestige Lux segment like THE ADDRESS Siam-Ratchathewi, expected to be ready for delivery around the third quarter, and condominiums in the Luxury segment with RHYTHM Charoenkrung Pavilion, which has already opened for ownership transfer, along with ASPIRE (2 projects) at ASPIRE Pinklao-Arun Amarin and ASPIRE Rattanathibet Weston, both of which are the first two ASPIRE condominiums completed under a new concept, continuing a 10-year partnership with Mitsubishi Estate Group, reinforcing confidence in being the only joint venture company that has maintained this long-term collaboration.

Exploring the Strategy of 2023: AP INCLUSIVE GROWTH for Mutual Growth

Certainly, driving all three business segments requires a plan to ensure all gears move in the same direction. To ensure that 2023 progresses steadily and clearly, AP has created a business strategy under the plan “2023 AP INCLUSIVE GROWTH: The Best Year for Mutual Growth”, with plans to create new innovations alongside business expansion through three dimensions, as explained by Witakarn Janthawimon, Deputy Managing Director of Corporate Strategy and Innovation at AP Thailand:

  • DIVE DEEPER IN PROPERTY BUSINESS: Work more intensively to maintain leadership in residential property development through three main business groups: condominiums, single-detached houses, and townhomes. Launch 58 projects valued at over 77 billion baht, aiming for a total of 192 projects across Thailand worth over 165.6 billion baht, with a sales target of 58 billion baht and total revenue of 100% JV at 57.5 billion baht.

  • HATCH NEW BUSINESS: Build on expertise in real estate by identifying new market gaps to support long-term holistic business growth, such as launching FitFriend, a delivery trainer service catering to health enthusiasts, with over 6,000 classes utilized per year.
  • PEOPLE & SOCIAL: Collaborate to drive social growth together, continuing the commitment to be an organization that prioritizes the development of 'people', providing future skills to everyone, including employees, students, and disabled graduates, to support everyone in leading a good life of their own choosing.

All of these strategies will unfold throughout 2023 for the giant AP, with “A Good Life of Your Own Choosing” being a focal point to watch.

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