Centro Ratchaphruek-Suan Phak 2 will occupy a 16-rai site, to be launched in the fourth quarter this year.
SET-listed developer AP Thailand Plc is confident in a robust economy this year, planning to launch a total of 35 projects worth a combined 54.4 billion baht in the second half.
Vittakarn Chandavimol, chief of the business group for condominiums, said the property market in the first five months was healthy in terms of both presales and transfers.
“The middle to upper-end segment performed better than the lower end as purchasing power was stronger and financial institutions were more confident in the former segment,” he said.
For the first five months this year, AP recorded 14.6 billion baht in presales, accounting for 44% of the annual target of 33.5 billion. Of the presales, 8.56 billion baht was from single houses and townhouses, with the rest from condos.
Mr Vittakarn said overall condo market growth this year will be lower than the year before with a rise of 10%, compared with 30% growth in 2017; key factors will be difficulty in acquiring land for condominium development because of rising land prices.
He said this year AP will launch the highest number and value of new projects since the company's founding 27 years ago.
AP will open a total of 43 new projects worth a combined 64.75 billion baht in 2018, comprising 38 single-house and townhouse projects worth a combined 39.35 billion baht and five condo projects worth a combined 25.4 billion baht.
The planned number is an increase from last month, when 34 projects worth a combined 49 billion baht were envisioned.
The additional nine projects are eight single-house and townhouse projects and one condo project.
Pamorn Prasertsan, chief of the business group for low-rise, said the new supply of single houses and townhouses will increase by 20% this year, higher than the usual uptick of 10%, as demand in the segment is on the rise, particularly for townhouses.
“Rising land prices has driven condo prices skyward,” he said. “Single houses and townhouses are alternatives for homebuyers and will be a new trend in property this year.”
Mr Pamorn said growing demand in the single-house and townhouse market was seen from sales in April, in which AP recorded 400 million baht in sales each week, compared with the average below 1 billion baht a month.
Revenue in the first quarter was 6.5 billion baht, up 27% from 5.13 billion baht in the same period last year. The aim is to have 33 billion baht in revenue by year-end.
AP has a sales backlog of 41 billion baht from condos, of which 10 billion baht will be realised in the remainder of the year.
AP shares closed yesterday on the Stock Exchange of Thailand at 9.15 baht, down five satang, in trade worth 65.1 million baht.