SET-listed developer AP Thailand is announcing record-breaking plans for investment in Thailand’s real estate market. The company plans to launch 58 new projects this year worth a combined 77 billion baht, the highest in the industry, with a target of 58 billion baht in presales and 57.5 billion baht in revenue.
This follows last year’s launch of 51 projects worth a combined 63.6 billion baht, which was the largest in terms of the number and value launched by the firm since its establishment in 1991.
Vittakarn Chandavimol, chief of corporate strategy and creation at AP Thailand, cites a good sign of economic recovery and strong growth of the housing market in 2023 as the key drivers behind the company’s ambitious plans. The rebound of the tourism industry and domestic consumption have also contributed to the positive outlook.
AP Thailand’s new launches in 2023 will be made up of 22 sites of single detached houses worth 34.8 billion baht, 27 townhouse projects worth 26.4 billion, four condo projects worth 11.8 billion baht, and five low-rise projects worth 4 billion in the provinces. To support this large number of new launches, the company is entering new market segments, such as single detached houses priced at 3-5 million baht and those priced at 50-100 million baht a unit.
Of the four new condo projects, two worth 8 billion baht will be joint ventures with Japanese real estate firm Mitsubishi Estate Group.
The partnership between the two firms has been strong for the past 10 years, with 21 condo projects worth 103 billion baht developed during 2014-2022, and a combined 21,300 units. Mitsubishi’s continued investment in the Thai property market is a clear indication of its confidence in the market.
The Thai real estate market has also seen an up to 75% increase in Bangkok land prices and is poised for growth in 2023, with the country’s finance ministry maintaining its GDP growth outlook for the year at 3.8%. Major developers, such as Noble & Supalai, have also announced significant investments in the Thai real estate market, betting on a market resurgence in 2023 as have Land & Houses putting AP Thailand in good company.
Housing prices in Thailand are expected to rise 5-10% in 2023 due to a labor shortage and rising construction. This, combined with the growing interest in Bangkok as a destination for luxury property investors and affluent Chinese buyers, who are attracted to the cheap international schools, slower pace of life, and affordable healthcare, means that the Thai real estate market is red hot with cryptocurrency investors surging into the country. The strong sales in Q3 and Q4 of 2022 have led to a decline in available second-hand residential units, with experts predicting a major rebound in the market in 2023.
Bottom line
AP Thailand is showing confidence in the Thai real estate market with its record-breaking plans to launch 58 new projects worth 77 billion baht in 2023. The majority of the projects will be low-rise houses, as strong demand is expected to continue in 2023. The Thai real estate market is growing, driven by factors such as the rebound of the tourism industry, domestic consumption, and growing interest from luxury property investors and affluent Chinese buyers. AP Thailand’s ambitious plans are a clear indication of the strength and growth of the Thai real estate market.
Source: Bangkok Post
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