AP to launch 5 condo projects for 13 billion baht in 2022, early pre-sale gains

AP Thailand is planning to develop 5 apartment complexes at a projected cost of 13 billion baht in 2022, citing a significant increase in presales in Bangkok’s condo market in Q1 this year.

The chief of the condominium business group says the condominium market in Bangkok has shown positive signs in the last six weeks, with AP registered 1.08 billion baht in presales from January 1 to February 15 for a 250% increase year on year.

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“Mass market condo with prices of 2-3 million baht a unit is in high demand. To avoid mortgage lending rejection, we will work with financial partners to help pre-approve customers’ financial qualifications before the transfer period.”

The 5 new projects AP has planned for this year are 61% more than those planned last year. 3 of them are partnerships with Japanese developer Mitsubishi Estate Group. The total value of their sales is projected to be 10.4 billion baht.

In the first half of 2022, AP plans to debut 3 new condominium buildings in areas where it expects a lot of interest, including the Sukhumvit-Rama IV, Pin Klao-Arun Amarin and Ratchayothin areas, with selling prices beginning at 2 million baht.

The real estate market in Thailand is projected to remain less competitive than pre-pandemic levels. AP expects 30-40% take up rate for low-rise buildings and 25% absorption for high-rise properties.

According to the Real Estate Information Center, the amount of new condominium units completed in Bangkok in 2021 and 2020 was 21,463 and 29,773 units, respectively — a significant drop from 54,769 in 2019 and 77,289 units, respectively, in 2018.

SOURCE: Bangkok Post