AP (Thailand) Public Company Limited (SET: AP), Thailand’s leading property developer on a mission to EMPOWER LIVING is geared up to make more history for condominiums in the mass segment. While the pandemic lingers, there have been positive signs since the beginning of this year in the condominium market, which is picking up along with customer demand. Initially, in the first half of the year, the company is scheduled to launch ASPIRE brand of condominiums in new looks to target urban young generation through the positioning ‘LIVE AS YOU ASPIRE’ to achieve freedom in every dimension of life.
Challenging every development limit, AP aims for ASPIRE to be the year’s best condominium in the mass segment. It will pitch three new selling points, including industry-first new unit layout design realized the best life space, an ideal-freedom common area and the best-value final offer at a starting price of Bht 1.99 million. For the pilot projects, the company will offer new developments in three prime city zones: Pinklao – Arun Ammarin, Ratchayothin and Sukhumvit – Rama 4, all of which are great locations for travel, work and lifestyle. The company will open a special round for customers to book the first project ASPIRE Pinklao – Arun Ammarin on 19 – 20 March. To make appointment for project tour, go to www.apthai.com.
Ms. Kamolthip Bumrungchatudom, Chief Condominium Business Group, AP (Thailand) Public Co., Ltd., said the company plans to launch this year 5 condominium projects worth a combined Bht 13,000 million. Three of those developments worth Bht 6,800 million will be launched in the first half of the year. She said it will be a great comeback of the brand ASPIRE in its new looks and will be the highlight of the year for which AP has set a whole new development standard based on two years of studying and deciphering an insight on the ever-changing lifestyle of target young generation. Over the years, the company found that the sentiment of condominium customers has improved continuously, especially the real demand in the country – those who would buy to live themselves. Positive feedback is evident in AP’s recent condominium sales which stood at Bht 1,080 million (15 Feb 22) despite without new projects launched. That’s a growth of over 250% compared to the same period of last year. The planned launch of new-look ASPIRE will make a difference and offer the top choice for young-gen customers looking for new condominiums in city zones at highly affordable prices starting at Bht 1.99 million.
“We have the brand ASPIRE positioned under the ‘LIVE AS YOU ASPIRE’ slogan meaning you will have freedom in every dimension of life. The aim is to make ASPIRE the best condominium in the mass segment through design thinking and project development. It will enable space function design to unlock every restriction of modern condo living. A condo now is not just an abode for every space function and experience inside ASPIRE condos from now on will be fulfilling and will ideally advance your happiness with respect to relaxation, private life and work which vary according to individual target groups in each location.
We will achieve that by combining three new selling points, which are 1. Modular Layout – the best life space. For the first time ever, we offer 40 new unit layout designs with a focus on flexibility to ensure proportionate space and more freedom to move around for the resident as we answer to our customer insight on hybrid lifestyle 2. The Best of ‘ME’ Space – an ideal-freedom common area. We offer functions that respond to our insight on the lifestyle and how those in real demand use spaces in each plot of land. In doing so, we give our customers active relaxation with balanced privacy all at the same time, and 3. Entry – Level Price – our price package is surely the best offer. We are confident that our new-look ASPIRE condos will unlock every freedom needed each day at each particular period of time so as to empower living in every aspect. We hope to get a good response from mass condo customers in all the locations we are preparing to sell.” said Ms. Kamolthip.
“The three prime locations we are preparing to offer our new ASPIRE condos are full of opportunities with enormous real-demand customers. They are perfect for both living and renting out, ideal for travel, work and urban lifestyle. Our survey of the market for condos five years back (2017-2021) found that (1) the market for condos in Arun Ammarin zone, which is a prime location with the country’s foremost medical and education hub and is a rare location for that matter because of the fact that land on Arun Ammarin of the size suitable for condo development is limited, ASPIRE Pinklao – Arun Ammarin will be the only new development out there. This is contrary to demand which is evident in consistent sales of up to 75% of the 11 projects on sale along the MRT Bang Yi Khan – Bang Khun Non – Fai Chai station. It also offers rental opportunity since the location should appeal to university students and healthcare workers. The rental rate in the last year stands at Bht 8,000 – Bht 15,000 a month with rental yield at 4.5-5% (2) the market for condos within a 1.5-kilometre radius from BTS Ratchayothin, one of the top real-demand locations which cater to students and new-gen office workers given surrounding large-scale office buildings and leading universities and, particularly its proximity to the extended MRT Green Line (Mo Chit – Saphan Mai – Khu Khot), which, once in service, will be perfect for commuters coming in and going out of the city. It should make the market for mass condos in the area more robust, making Ratchayothin prime for investment for both living and renting out in the future,”
“Our survey of condo supply found that there are 15 projects with 9,024 units, 87% sold. The last three years, there have been fewer projects launched. For the units outstanding, the sale prices are Bht 125,000 – 150,000 per square metre on average. That’s not in line with what is sought by the market. The rental yield in the area is also good at 5% and (3) the market for condos on Rama 4 – Sukhumvit zone within a 1.5-kilometre radius from BTS Phra Khanong at the heart of Bangkok’s Sukhumvit central business and lifestyle district, here 76% of the 21 projects on sale are sold. And given the rental yield for condos in the area which is at around 5% a year, it’s no surprise to see the market for condos around there is consistently of great interest to customers,” Ms. Kamolthip added.
“We believe that the new-look ASPIRE will be the best condominium in the mass segment. It will make a difference and will set a new standard for condo living, which reflects industry best. The need for freedom to live a life in all respects sought by customers will be completely met, whether it be a different project proposition, a design of unit layout and common area for every aspect of freedom needed for modern condo living or a price that is very reachable. All this will enable us to reach customers in the mass segment more. It will allow us to get a good response from customers in all locations when we roll out plans to sell the new ASPIRE that will have its presales slated for the first half of the year onwards. As for our first project ASPIRE Pinklao – Arun Ammarin which is in a rate location near Siriraj Hospital, MRT Bang Khun Non and Chao Phraya Pier with a shuttle service to and from the project, one-bed units start at Bht 2.89 million. We will open a special round of booking on 19 – 20 March,” said Ms. Kamolthip.
This year, AP plans to launch 5 new condominium projects worth a total of Bht 13,000 million, up 65% on the last year. Condominium sales for the whole year are projected at Bht 12,000 million with total revenues from condominiums (100% JV included) projected at Bht 12,300 million. In the first half of the year, the company plans to launch 3 projects worth Bht 6,800 million. As at 15 Feb 22, the company has 15 ongoing condo projects worth Bht 27,530 million in outstanding value and has a backlog of condos, including JV developments valued at Bht 18,300 million, of which Bht 1,500 million are AP condos which will have their revenues realized within this year and Bht 16,800 million are JV developments. The remainder Bht 9,790 million will have their revenues realized through to 2024. Revenues will be realized from transfer of ownership in 3 new condos, namely ASPIRE Erawan Prime, LIFE Sathorn Sierra and RHYTHM Ekkamai Estate, worth totaling Bht 12,800 million.
For its success in the last year (2021), AP Thailand enjoyed great business achievement as industry No. 1 leader on a mission to EMPOWER LIVING. It had a new record growth of revenues with total turnover from low-rise products and condominiums (100% JV) at Bht 40,015 million. Net profit in 2021 stood at Bht 4,543 million, a growth of 7.5%. It was another proof of the company’s organic strength and its resilience – the readiness to adapt quickly to deliver good quality of life to customers on their terms. It also reflected consumer confidence and readily available purchasing power.
“And this year the market for condos will continue to adapt to fast changing consumer behavior. We have detected increasingly improving real-demand signs among customers in the middle to lower middle segment who are looking for new city-zone condos. We have seen many developers joining the competition in the segment.
Companies that make accurate decisions, choose the right plot of land, respond to next normal lifestyles to develop the right project at the right price will have the advantage over the rest in the industry and will definitely receive a good response from customers,” Ms. Kamolthip concluded.