AP focuses on mid-priced market

BackJul 14, 2006

KANANA KATHARANGSIPORN

The SET-listed developer Asian Property Development Plc (AP) has expressed confidence in the mid-priced townhouse and condominium market, with plans to launch eight new projects worth a combined 10 billion baht in the second-half. Senior vice-president Visanu Suchatlumpong said the rise in mortgage rates, from 3-4% last year to 7% this year, had increased homebuyers' monthly instalments by as much as 35% and their purchasing power was declining.

''Those [homebuyers] who were able to buy a unit priced five million baht last year now can afford only 3-4 million baht a unit. So, we have adjusted our product prices to around 2-3 million baht, instead of 4-5 million baht, and are developing more condominiums,'' he said.

The condominiums will be within walking distance or less than one kilometre from mass transit stations.

Mr Visanu said demand for condos near BTS skytrain and MRT subway stations was very strong, as shown in the brisk sales of projects by rival developers such as LPN Development, Supalai and Plus Property Partners.

''Higher oil prices, traffic jams and a change in people's lifestyle are the keys.''

AP will offer three condominium projects worth a total of five billion baht in the middle market under the Vogue brand and located in Chidlom, Siam and Thong Lo. Prices would range from 70,000 to 90,000 baht per square metre or about 3-5 million baht a unit.

It will also open a low-priced condominium under the Life

Source - Bangkok Post Friday 14 July 2006