SC Bets On Luxury Homes Despite Market Slowdown

SC Asset Corporation is signaling confidence in the luxury housing market despite broader real estate headwinds from weakened demand and oversupply. The company plans to raise its 2025 revenue target to approximately 16.5 billion baht following better-than-expected first-half performance, while accelerating land acquisitions to 15 parcels and launching four new projects plus 16 relaunches in the second half.

Mongkut Tetseechaoroen, managing director of SC Asset's horizontal property development and marketing division, revealed that the company is revising its 2025 revenue target upward from 16 billion baht to around 16.5 billion baht. The luxury housing segment has outperformed projections in the first half, demonstrating continued strength despite sector-wide challenges.

Tetseechaoroen noted that while the overall real estate market faces pressure from reduced purchasing power, SC views the upper-end housing market as resilient. High-income buyers are less affected by economic conditions than the mass market, resulting in satisfactory first-half performance that exceeded company forecasts. "This is another strong year for SC despite the real estate sector facing multiple challenges. Our business continues to grow with trends better than anticipated," he stated.

SC maintains market leadership in homes priced 30 million baht and above, commanding 21% market share in 2022, rising to 23% in 2023, with continued growth expected this year. The company specializes in luxury and ultra-luxury project development, a focus area it prioritizes exclusively.

The company aims to maintain leadership in the 20-30 million baht and above segment over the next five years while sustaining annual market share growth of 3-5%, believing the upper-market segment holds growth potential despite overall market contraction from economic conditions.

Tetseechaoroen explained that SC's counter-trend investment strategy is driven by an opportunity created as larger competitors slow land acquisitions due to rising market supply. Reduced competition for land purchases enables SC to acquire quality properties at reasonable prices.

This year, SC allocated approximately 6 billion baht for land acquisitions, with 4 billion baht designated for horizontal projects. The company has already spent over 50% of this budget, purchasing 15 parcels—exceeding the original 10-parcel target—by securing parcels with strong fundamentals in price, size, and location, particularly near central business districts suitable for future luxury housing development.

"Many companies are slowing land purchases, but we see this as a prime opportunity to accumulate land banks because quality plots are becoming more available," Tetseechaoroen said. "As market supply gradually decreases, we believe the market will recover, and land purchased during this period will create long-term value."

For the second half, SC plans to launch four new horizontal projects and relaunch 16 existing projects through comprehensive product redesign—not merely cosmetic rebranding, but reimagined homes incorporating new architecture, functionality, and spatial design to meet modern lifestyle needs.

Tetseechaoroen noted that the relaunch initiative stems from deep consumer behavior research conducted during the market slowdown, revealing that customer demand hasn't declined but rather shifted.