Mr Vittakarn (right), pictured with Tomohiko Eguchi, director and executive officer, Premium Residence Co, a joint venture between AP Thailand and Mitsubishi Jisho Residence, says several areas in Bangkok still see strong condo demand.

SET-listed developer AP (Thailand) Plc plans to mine familiar territory, launching condo projects in locations where it found success in the past, with a high rental yield, rising capital gains and prospective demand to draw both real and investment buyers.

Vittakarn Chandavimol, chief of corporate strategy and creation for AP, said it will launch two condo projects worth a combined 14 billion baht in the Rama IX and Ratchathewi areas in the fourth quarter this year.

Both will be joint ventures with Japanese partner Mitsubishi Estate Group. They will be the 14th and 15th joint venture projects since 2013. The first 13 projects had a combined sales value of 59.7 billion baht and are 92% sold.

The two new projects are in locations where AP has launched five condo projects each. Both locations had strong sales rates.

"Many locations in Bangkok still see strong condo demand from both real and investment buyers," he said. "Condo oversupply is not the rule at every location."

In the Siam-Ratchathewi area, AP launched five condo projects during 1997-2009 with a total of 1,800 units worth a combined 7.75 billion baht. All sold out many years ago.

The company plans to launch The Address Siam-Ratchathewi worth 8.3 billion baht in the fourth quarter.

Asok-Rama IX has seen five AP condo projects since 2013, with four selling out and the latest one 97% sold.

According to AP's property brokerage subsidiary Bangkok Citismart, there were 10 condo projects with a total of 9,411 units launched in the Asok-Rama IX area, or from Phetchaburi subway station to Thailand Cultural Centre station, during the past five years. The average sales price at this location was 175,000 baht per square metre and the sales rate was 83%.

In the Asok-Sukhumvit area, from Sukhumvit subway station to Phetchaburi station, nine condo sites were launched with 3,463 units. The average price was 240,000 baht per sq m and sales rate was 82%.

"There is an investment opportunity in the Rama IX area for those buying for rent as there are around 78,000 people working in the surrounding area," said Mr Vittakarn.

"The opportunity will grow as CPN plans to develop projects behind CentralPlaza Grand Rama IX after it takes over from Grand Canal Land. By 2023 the Orange Line from Minburi to Thailand Cultural Centre will double the number of passengers on the subway line."

Condo prices grew 9% in the Asok-Phetchaburi-Rama IX area per year, with an average resale price of 159,000 baht per sq m. The rental rate was between 500-900 baht per sq m per month, with an annual yield of 5-6%.

On Oct 6, AP plans to launch Life Asoke Hype on a five-rai site on Chaturathit Road, with 1,253 units worth 5.7 billion baht. It aims to have 63% sold by year-end.

As of Sept 15, AP recorded 29.7 billion baht in presales this year, up 9% from the same period last year. Of the amount, 14.5 billion baht was from condos, down 10%, with a jump of 38% in single houses and townhouses to 15.3 billion.

Soonthorn Sathaporn, managing director of property developer Sathaporn Estate Co, said it aims to launch later this month The Shade Sathon 1 on a 2.4-rai site, with two eight-storey towers housing 282 condo units worth 1.3 billion baht.

AP shares closed yesterday on the SET at 9.45 baht, down 10 satang, in trade worth 93.2 million baht.