AP brokerage unit eyes sales of B1bn from second-hand units

BackAug 15, 2006

KANANA KATHARANGSIPORN

Bangkok Citismart, a property brokerage unit of Asian Property Development Plc (AP), targets a transaction value of at least one billion baht next year from sales and rentals of second-hand residential units.

Pumipat Sinacharoen, AP's senior vice-president, said the new wholly owned subsidiary would deal with second-hand residential units in all segments including single houses, townhouses and condominium units, priced from three million baht a unit, or with a minimum rental rate of 30,000 baht per month.

It will offer property rental and sales services to current AP customers, as well as for the general market, an extension of an earlier plan for the brokerage office to serve only AP customers.

The company currently has about 1,000 units on its books, more than 60% of which are are AP units.

Mr Pumipat said Bangkok Citismart had handled transactions worth more than 100 million baht since it began operating in early May. Its most active business is condominiums.

He said high oil prices had changed trends in home purchasing and renting. More people were now opting for second-hand city condominium units as new ones were too costly and less conveniently located.

Bangkok Citismart charges a 3% brokerage fee on sales transactions, one month in rent on a one-year rental contract and 1.5 months in rent on a two-year contract.

In the future, it will also manage the last remaining sales of AP projects, so that AP can move its sales representatives to focus on other projects. AP currently has 17 ongoing projects.

Bangkok Citismart plans to expand its business to operate serviced apartments next year, due to 20% annual growth in the expatriate community in Thailand, based on the number of work permits issued.

The company will also manage Antique Palace, a renovated apartment building in Soi Thong Lo. The 30 fully furnished apartments will rent for up to 60,000 baht per month, and are targeted at Japanese residents.

It aims to expand its business to cover commercial and industrial buildings, as well as land plots next year. It also operates online at www.bkkcitismart.com.

AP shares closed on Friday on the Stock Exchange of Thailand at 2.74 baht, up six satang, in trade worth 11.68 million baht.