AP plans 15 projects in H2

Asian Property Development Plc plans to launch 15 new projects worth a combined 24 billion baht in the second half of the year, despite an influx of new housing supply coming into the market.

Deputy chief marketing officer Vittakarn Chandavimol said the developer remained confident in both the country’s economy and a recovery in housing demand in the second half, after the market had slowed in the last two months due to the political crisis.

“As long as there are no layoffs, the local economy will remain strong,” said Mr Vittakarn.

“Demand for low-rise units is very good while our supply is going to be out of stock, so more than a half of the new projects will be single houses and townhouses.”

Seven townhouse projects and five single-house projects will be developed on Kalapapruek, On Nut, Suksawad, Ratchapruek and Vacharapol roads.

The projects will comprise 1,300 townhouse units and 1,000 detached houses with a combined value of 14 billion baht.

The other three projects will be condominiums with a total of 2,300 units worth a combined 10 billion baht. They will be located on Soi Ari 2, Sathon Road and Sukhumvit 50, he said.

“We will compete [with the high volume of new supply] with location, faster construction and cost controls,” said Mr Vittakarn.

Asia Plus Securities said housing competition in the second half would be tougher as 14 listed developers planned to launch about 160 new projects worth a combined 200 billion baht.

AP expects presales of 7-8 billion baht in the first half, after recording 5.4 billion in the first five months.

In the first quarter, the developer posted sales of 3.62 billion baht, but this dropped to 1.8 billion during April and May due to seasonal effects and the impact of the political crisis.

As of May 9, AP had a sales backlog of 14 billion baht, 70% to 80% of which will be realised within this year, said Mr Vittakarn.

Demand for low-rise units was very strong as the company had nearly closed sales at its Baan Klang Krung Sathon townhouse project, which was just launched on June 12, he said.

The 900-million-baht project is located on a nine-rai plot on Charoen Rat Road near Sathon Road, comprising 90 three- and four-storey townhouses priced from 9-20 million baht.

AP shares closed yesterday on the Stock Exchange of Thailand at 5.05 baht, unchanged, in trade worth 55.687 million baht.