Margin and Market Conditions
The decline was mainly due to current market conditions and the impact of overseas policies, which affected oil prices and inflation, leading to stronger price competition. The margin is expected to improve in the second half of the year from the transfer of newly completed condominium units.
Construction Material Costs
Some materials have increased in price. Initially, AP has locked in material prices in advance for approximately 6 months to 1 year, depending on the item, so the actual impact on total cost is only around 1.2%–1.7% (or less than 1% impact on selling prices), under the assumption that diesel prices remain at 45 baht per liter.
Foreign Customers
Purchasing power has slowed across all segments. The economy segment still has demand for housing, but mortgage rejection rates remain high. Foreign buyers account for approximately 50% of condominium bookings, with Myanmar ranking first, followed by Taiwan and China.
Land Acquisition Budget and Strategy
The land acquisition budget is adjusted according to cash flow and profit (gearing control). If transfers do not come in or profit declines, the land acquisition budget will be reduced immediately.
Provincial Expansion
Currently, provincial projects account for 5% of total sales. Next year, the target is to increase this to around 5%–10%, focusing mainly on low-rise projects driven by real demand.