Vittakarn Chandavimol

SET-listed developer AP Thailand has launched a new business that offers buying-renovating-selling services to tap into the second-hand home market worth over 700 billion baht, a segment that housing developers rarely explore.

Vittakarn Chandavimol, chief corporate strategy and creation, said the new business was one of the startups developed by the company's innovation dream team, which was spun off into a new subsidiary.

"Land in inner-city locations is scarce and many old condo buildings in these areas require renovation to attract demand from those seeking units at more attractive prices to live in the city," he said. "This is an opportunity we are eager to expand into."

Two years ago, AP established a new subsidiary, Homerun Protech Co, to buy, renovate and sell second-hand single detached houses, townhouses and condo units.

The key areas for low-rise houses with strong demand include Ratchapruek and Bang Na while Sukhumvit, Sathon and Lat Phrao are the target areas for condo units.

Supanida Thangtongchin, managing director of Homerun Proptech, said that while the second-hand home market is very large, residential developers have hardly entered this market to provide solutions.

"This market is very interesting because, in some locations, no new units are being introduced," she said. "Homebuyers prefer second-hand units due to their lower prices and larger usable areas compared to new units in the same locations."

She said the company developed a platform where homeowners can list their units for sale. The platform will use AI to evaluate the offer price and will pay in cash if homeowners agree to sell.

After acquiring these units, the subsidiary will categorise them into three series. The first series will consist of rare properties that will undergo a full renovation, with a budget of 20-30% of the unit prices.

For units that are not so old, it will renovate specific areas to enhance the mood and tone, making the units more attractive.

For units in projects where demand is high but the prices are lower than the market rate, it will spend 5-10% of the unit prices on renovations.

"With support from AP, we can get competitive prices for the materials used in renovations and introduce home loan interest rates from AP's financial partners to potential buyers. The rate is around the minimum retail rate -3%."

After starting the business last year, the company recorded sales of 20 units worth 200 million baht, exceeding the target set for 2024. This year it will spend 500 million baht to buy and renovate second-hand units.