SC Asset takes low-rise local focus

Luxury condominiums will be offered overseas

SC Asset Corporation Plc, the SET-listed property arm of the Shinawatra family, plans to launch only low-rise housing projects domestically in the second half.

An artist’s conception of SC Asset’s Grand Bangkok Boulevard Phetkasem-Pinklao luxury single house project, priced from 30-60 million baht a unit. The company will introduce condos to buyers in other countries as it focuses on low-rise housing projects for the domestic market.

Condominiums will be introduced abroad due to an expected slowdown in the Thai property market.

Chief operating officer Kree Dejchai said property market growth will decline for the rest of the year, unlike kin recent years, with fewer projects initiated by large developers.

"We don't see any positive factors boosting the property market in the second half. Sector growth this year will be stable or a slight expansion, with large developers grabbing a bigger share from smaller firms," he said.

However, market competition from September until year-end will be very high, as many large developers set a high growth target this year after enjoying a healthy performance in the first half, said Mr Kree.

SC's new launch in the second half will be only low-rise projects in which demand is real. Compared with condo, single house and townhouse also generates quicker revenue due to shorter period of construction.

After opening presales at four new projects comprising three single-house sites on Rama V Road, Ram Intra and the Ring Road-On Nut area as well as a townhouse project on Ratchaphruek Road worth a combined 4.55 billion baht last week, SC Asset recorded sales of 400 million.

It will launch two new single-house projects next week and one single-house project each in Bangkok and Cha-am in the fourth quarter.

The company targets 15 billion baht in presales for the full year after recording 7 billion in the first half.

As of June 30, SC Asset had 11 condo projects with remaining units worth a combined 10 billion baht and 26 single house and townhouse projects with remaining units worth 25 billion.

The company will next week introduce 40-50 units at two luxury condos - The Crest Sukhumvit 24 and The Crest Sukhumvit 49 in Singapore. Another 100 units will be offered at the Centric Ratchada-Huai Khwang condos in Singapore and Beijing in October, while a roadshow planned for Moscow was cancelled after a condo in Pattaya sold more than 50% to Thai buyers.SC expects 500 million baht from condo sales abroad this year.

Last year it sold 40 units in Singapore worth 450 million baht at The Crest Sukhumvit 34 condo.

Shares of SC closed yesterday on the SET at 3.72 baht, down two satang, in trade worth 15.3 million baht.

About the author

columnist
Writer: Kanana Katharangsiporn
Position: Business Reporter