AP Thailand believes it can be one of the country’s top three residential developers and is targeting 2021 to make that a reality, chief executive officer Anuphong Assavabhokhin recently told local media outlets. The developer aims to generate THB50 billion in 2021.
In order to help AP become more agile and profitable, the company developed four business groups. One for detached housing, one for townhouses and two covering the different segments of the condo market. Each department will handle construction, marketing and administration operations under its watch. Anuphong also stated that AP will continue corporate marketing and corporate administration that will oversee the entire business.
“When home-buyers want to buy a residence, they have to consider the options and visit many projects,” Anuphong told the media. “We want to be one of the three top choices for customers, with most of them finally selecting from one of our residential projects because we offer differentiated products that serve their demand, and also offer optimum space utilisation for them.”
One of the reasons AP wants to reorganise is because the property market now is much different than it was 25 years ago when the developer first began operations. There were more small and medium-sized developers in 1991, however, major residential developers now dominate the landscape requiring them to rethink their strategies.
“Ten years ago, the big fish preyed on the small ones for growth. Now, they eye other big companies’ market shares,” Anuphong said. “If we want to survive this intense competition, we have to drive our business so that we rank in the top three in the market within five years in terms of value.”
AP is targeting sustainable growth of between ten percent and 15 percent this year with stronger growth of more than 20 percent expected in 2017 and 2018 due in part to the initial success of its joint-venture business with Mitsubishi Estate Group. If these figures hold up, AP could become one of Thailand’s biggest developers by 2021.
