An air-conditioning apparatus includes a heat exchange unit including a condenser that radiates heat of refrigerant discharged from a compressor, and an evaporator that expands the refrigerant flowing out of the condenser using an expanding device and then absorbs ambient heat into the evaporator, the condenser and the evaporator being connected to each other. According to operation mode, air to be supplied to a vehicle interior selectively exchanges heat with the condenser or the evaporator, or sequentially exchanges heat with the condenser and the evaporator. A subcooler that cools the refrigerant flowing out of the condenser before the refrigerant is expanded by the expanding device is provided. The subcooler is disposed at a position below the evaporator and to which condensed water flows down.