Thailand-Property

AP prepares for 40 launches to close 2022 after massive first half growth

Khun Vittakarn Chandavimol, AP Chief of Corporate Strategy and Creation, at an event earlier this year

It was a banner first half for AP Thailand with the homebuilder revealing a sales increase of 43 percent year-on-year. That performance is a driving force behind the firm’s second half plans which will see it launch 40 projects before year end.

AP reported a noticeable jump in the sales of single detached homes and townhomes with this segment growing by 25 percent in the first half when compared to the same period in 2021. Additionally, the developer saw condo demand recover with units at its Aspire Pinklao-Arun Amarin and Aspire Ratchayothin projects being taken up quickly.

Khun Vittakarn Chandavimol, AP Thailand Chief of Corporate Strategy and Creation, told the Bangkok Post that the developer’s success can be attributed to its strategy of maintaining affordable prices as people try to recover from the pandemic while coping with rising inflation.

The firm will be busy between now and the end of the year as it prepares 40 new project launches. AP revealed these plans include 16 townhome developments, 18 single detached home developments and three condominiums. Three property projects beyond Bangkok are also in the pipeline.

Related: Low-rise housing continues to dominate the Thailand property market

Bangkok sees an uptick of new condo projects

While housing has dominated the Bangkok property market over the past two years, condos appear to be making a comeback. Several new projects were launched in Bangkok to start 2022 as the market shows signs of life. This trend is expected to continue as Thailand reopens in full and more people return to the office.

“The momentum will continue in the second quarter as Thailand has lifted RT-PCR test requirements upon arrival for vaccinated international travelers from May 1,” Khun Phattarachai Taweewong, Research and Communication Director of Colliers, stated. “The market became very active in the first quarter because of two positive factors: the loan-to-value [LTV] ratio for mortgage lending eased in October and the country’s reopening on Nov 1, 2021.”

Related: Here’s what you need to know about Bangkok condo investment this year

Colliers International Thailand found that there were 16 new condo projects with a total of 14,088 units launched during the first quarter of 2022. This was the highest amount since the fourth quarter of 2019. The sales rate for new condo projects in Bangkok was also promising. According to the consultancy, this came in at 62 percent during the first quarter of 2022 which is the highest total since 2018.