AP foresees second-half housing supply boom

BackJul 13, 2012

KANANA KATHARANGSIPORN

The SET-listed developer Asian Property Development Plc (AP) expects an influx of new housing supply in the second half of this year, intensifying competition despite uncertainty about floods.

A large number of new housing supply will enter the market in the second half while demand for low-rise units  single houses and townhouses  is recovering,said Vittakarn Chandavimol, AP's chief marketing officer.

The forecast, however, hinges on the absence of massive floods like last year.

"The country's fundamentals and economic factors are good so housing demand in both condominium and low-rise segments are still strong and will continue to be so for the rest of the year," he said.

Homebuyers in the single-house and townhouse segments are back but not all locations will see a recovery. In some places which were flooded last year like 345 Road in Nonthaburi, housing sales have yet to pick up while demand has returned in slightly flooded areas since the second quarter.

Mr Vittakarn declined to predict whether floods will recur this year but said AP would avoid launching new projects in the rainy season.

In the second half, AP plans to launch 10 projects worth a combined 11.6 billion baht comprising two single-house projects worth 10 million and 20 million baht, six townhouse projects and two condos.

AP booked 11.6 billion baht in sales in the first half, 35% higher than the 8.6-billion-baht target, mainly driven by 7.8 billion baht from condominium sales.It plans to achieve 20 billion baht in sales by year-end.

"Condominium units priced one to 3 million baht each saw brisk sales in the first half," he said. This price range accounted for 63.4% or 12,907 units of a total of 20,343 units sold in the first half,up by 140% year-on-year.

Currently, AP has a sales backlog of 32.7 billion baht, of which 27.7 billion is condominiums.It has 39 projectson hands,19 of which are condominiums and the rest low-rise projects. Of the backlog,16 billion baht will be realised this year. This year's revenue target is 17 billion baht.

The company yesterday launched its own property fair at CentralWorld, which runs until Sunday. A total of 4,333 remaining units at 18 condominium projects are the highlights, with total sales value of 12.2 billion baht. It targets achieving 900 million baht in sales during the event.

Of the 18 projects, one is new. The Aspire Sathorn-Taksin has 546 units worth 890 million baht with unit prices starting at 1.4 million baht.

AP shares closed yesterday on the SET at 7.15 baht, down five satang, in trade worth 82 million baht.

 

BANGKOK POST
13 July 2012