Developers are eyeing for success this year 2017

May 05, 2017
AP's success has drawn curiosity on society. Question on how to achieve such, arises among the people. The developer "think outside the box" which leads them to creating quality designs that attracts consumers. The main characteristic of this accomplishment is the drive to partake the skills and knowledge to its business partners and Thai society. Over three years, AP has partnered with Japan’s Mitsubishi Estate Group (MEC) allowing the two firms to partake ideas and set of strengths that complemented one another. They produced total of eight projects together with more developments in the pipeline. AP Chief Executive Anuphong Assavabhokhin said, “AP and MEC continue to look at the same direction and we’re still planning to develop the new condominium in 2017.” Another factor that makes AP unique is its partnership with Japan’s Mitsubishi Estate Group (MEC). The fact that they worked hand in hand to share creativity and quality in all aspects all throughout the years had strengthened their partnership. The developers also empower Thai society with knowledge through the AP Academy. AP Academy as the first institution in Thailand to provide complete and extensive learning in real estate. Learning materials and distinct program are accessible to students wanting to be part of the real estate industry.  

Strong expectation on 2017

Ap confirmed that they planned 20 new projects in Thailand to be launched this year. There will be 3 condominiums, detached home complexes and 8 townhouse projects. The developer believes that Thailand’s real estate fundamentals are strong and is confident in the projects they're about to launch this year. “Today, there are clear signs of things returning to normal in terms of marketing activities and purchasing. This year the company expects more competition in the low-rise segment,” Anuphong said. “The challenge for the company from now on will be to acquire land to develop projects that are in line with consumers’ expectations.” In the first quarter, the company plans to launch 2 new housing projects which are the Pleno Bangyai and Pleno Sukawat. Ban Klang Muang Classe Ekkamai-Ramintra Phase 2 development is also anticipated to follow in the coming months.  

The development and expansion of Bangkok’s new mass transit system have a vital role in the growth on property market this year

We can look back at the property market for 2016 and anticipate to what is to come this 2017. Real state Developers faced a relatively tough year with a combination of influence that included the government sponsored property tax incentives at the beginning of the year and the pushing forward of project launches from the back end of 2016 to this year. Colliers International data released concluded that 40,000 new condominium units in Bangkok were launched in 2016 and approximately 13,000 units for new housing projects. As an impact of the overall slowdown of Bangkok’s market, the supply of units in the condominium market decreased in the final quarter for 2016. Real estate firm Edmund Tie & Company saw a slight decline in the take up rates of newly launched condominiums on same period. During that time of national mourning of His Majestic the King, many developers pause their sales and marketing activities. Edmund Tie & Company state that launches were lower by nearly 60 percent compared to the previous quarter. Regardless of this intended slowdown, the average asking price increased slightly by 0.2 percent compared to the same period the previous quarter. This is, however an increase of 13.2 percent yearly proving how property in Thailand is a profitable investment. A positive perspective on the market this 2017. Sukhumvit, as the most popular destination in Bangkok for new developments is envisioned to continue its reign. Developers are to resume launches this year, however there will be a particular focus on the areas dotted along the planned mass transit networks. The Pink, Yellow and Orange lines are due to start construction this year and a flurry of activity is anticipated as developers and investors capitalize on this expansion. Property located along Bangkok’s mass transit networks will be great venture and will have a vast growth. The expansion may also boost the nation’s gross domestic product with current positive growth projection between 3.1 and 3.15 percent this year.
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