SC Asset to move away from property as market stagnates

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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