AP Thailand and Sammakorn are the latest developers to announce they are shifting their focus from condominium projects to more low-rise residential projects this year. Both companies have confidence in the Thailand property market and believe low-rise projects will continue to be in high demand.
AP chief executive Anuphong Assavabhokhin said that the government’s investment in new mass transit lines will help drive the property market forward. AP recently announced plans to launch 20 residential projects this year worth a combined THB32.7 billion. Of this total, 15 will be low-rise, single-house and townhouse projects worth THB14.5 billion. AP also plans to launch five condominium projects in 2016.
AP will launch a total of eight single-house estates and seven townhouse projects and hopes presales from these will amount to THB14.5 billion this year. This year the developer is targeting THB16.5 billion from condos presales. AP’s revenue from single houses and townhouses will total THB13.8 billion while condo transfers at 11 sites while earn another THB9.9 billion.
AP targets for this year are THB31 billion in presales and THB23.7 billion in revenue. Both estimates mark slight increases from last year’s totals. In 2015, presales rose 24 percent y-o-y but the developer actually saw revenue declined by 4.6 percent.
Meanwhile Sammakorn is another Thai property developer looking to capitalize on the increasing demand for low-rise projects. The company’s managing director Kittipol Pramoj Na Ayudhya explained that it would launch three single houses and townhouses projects worth a combined THB4.4 billion this year.
“We will have no new condos this year as the condo market is not as good as expected amid the economic slowdown,” Kittipol stated. “Consumers and investors have a wait-and-see attitude on the economic situation.”
The company launched its first condo project, S9, back in 2013 and the project was completed last year. The eight-story condo has 299 units with some THB528 million still for sale.
Image: Kittipol Pramoj Na Ayudhya, managing director at Sammakorn
