BANGKOK, THAILAND -
Media OutReach Neswire
- 17 March 2025 - SET-listed developer SC Asset Corporation plans to
rebrand and diversify into non-property businesses next year, as the
housing development sector continues to slow down and may take a few
more years to return to normal.
Chief executive Nuttaphong Kunakornwong said the residential market will
continue to face three key negative factors carried over from last
year: high household debt, excess supply, and low consumer confidence.
"These challenges made it more difficult for residential developers to
sell and transfer houses last year," he said. "Launching new projects is
also a struggle under such circumstances, further compounded by
geopolitical volatility."
To diversify risks, SC is exploring a new business venture for
investment next year that is not related to the property sector. It also
plans to rebrand with a new logo in the second half of this year to
appeal to a broader range of consumers.
"We will start by integrating customer services with our home service
and solutions application, Rue Jai, and our utility token, Morning Coin.
We'll leverage these assets to pave the way for the new business," Mr
Nuttaphong added.
Besides the plan to diversify into non-property businesses, SC will
place greater focus on recurring-income ventures, particularly in the
hotel and industrial estate sectors, which have experienced robust
growth since last year.
In mid-2025, it will launch two new hotels: Kromo Bangkok near Sukhumvit
Soi 29 and The Standard Pattaya in Na Jomtien. They are being developed
through joint ventures with Japanese property firm Daiwa House and
contractor Syntec Construction, respectively.
Warehouses across three locations, including 78,000 square metres at
Bang Na KM 20, 46,000 sq m in Laem Chabang, and 37,000 sq m in Amata
City Chonburi, will be launched in the second and third quarters of the
year.
SC will also invest further in apartment rentals in the US, where it currently has five projects.
Meanwhile, it will not be making new investments in office spaces for
rent, which currently tally 119,568 sq m across six towers, due to an
oversupply in the market.
It aims to increase its earnings before interest, taxes, depreciation
and amortisation (Ebitda) from recurring-income businesses from 20% to
25% of total revenue over the next few years.
Due to unfavourable sentiment and existing excess supply, SC will launch
only 15 new residential projects worth a combined 28 billion baht in
2025, down from 17 projects worth 31.8 billion baht last year.
"With the current residential supply, which will take at least five
years to be sold out compared to two to three years under a healthy
situation, the residential market will remain sluggish and will take a
few years to return to normal," Mr Nuttaphong added.
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