AP launches direct debit payment plans

BackJun 27, 2007

The SET-listed residential developer Asian Property Development Plc (AP) has introduced payment card and direct debit services to help its customers, aiming to halve their financing rejection rates. Senior vice-president Visanu Suchatlumpong said the new service would help customers build financial discipline as the bank would be able to check their records from the pre-approval period before they applied for mortgage loans.

''We expect to reduce the rejection rate of 15-20% to only 7-10%,'' he said yesterday.

The programme is an innovation that is expected to appeal to the company's relatively young target market. ''It will also reduce the documents they will get from us and prevent the loss of payment slips they have to use each month,'' said Mr Visanu.

AP yesterday joined with Siam Commercial Bank and Kasikornbank to offer the service, starting with customers of the company's three Life condominium developments: Ratchadaphisek-Sutthisan, Phahon Yothin-Aree, and Sathorn Soi 10.

With the card, customers can make monthly down-payments via SCB teller counters or ATMs and through Kbank's 24-hour K-lobby service. Direct debit from SCB saving accounts will be available for the Ratchadaphisek-Sutthisan and Sathorn Soi 10 projects and through Kbank accounts for the Phahon Yothin-Aree condominium.

Mr Visanu said that after customers complete their down-payments, those with good records would receive a discount of 10,000 baht a unit from the company and 100% mortgage credit at special interest rates from the two banks.

This year, AP has presales of 8.8 billion baht, up from eight billion in the same period of 2006. About 5.5 billion baht came from condominiums and 3.3 billion from townhouses and single houses.

The company revised up its sales target from nine billion baht to 12 billion for this year while keeping its revenue target at seven billion baht, said Mr Visanu.

In the second half of the year, AP plans to launch five new projects worth a combined 4.2 billion baht. Three would be Life condominiums and two would be townhouse projects under the Baan Klang Krung brand.

One of the condominiums will be located on a two-rai site on Phahon Yothin Soi 18, comprising 183 units priced from 1.5 million to 2.3 million baht a unit or about 56,000 baht per square metre. The project sales value would be 390 million baht.

The other two condominiums will be on Sukhumvit 65 and Ratchadaphisek Road and worth around one billion baht each, he said.

The two townhouse estates will be an 11-rai site in Krungthep Kreetha Road area worth 300 million baht; and a 10-rai site in the Chokchai Si-Wang Hin area worth 500 million baht. Unit prices would fetch between 3-3.5 million baht.

AP shares closed yesterday on the SET at 5.90 baht, up 15 satang.

 

Source: Bangkok Post by Kanana Katharangsiporn
Wednesday June 27, 2007