SC Asset shifts focus to non-property ventures amid housing slump

In Bangkok, Thailand, on March 17, 2025, SC Asset Corporation, a prominent developer listed on the Stock Exchange of Thailand, announced plans to rebrand and shift its business focus away from the property sector. This strategic pivot comes as the housing development market is experiencing stagnation, caused by ongoing issues such as high household debt, excess supply of homes, and diminished consumer confidence. These factors have made it increasingly difficult for residential developers to conduct sales and project launches, with the overall market anticipated to remain sluggish for several more years. The company's chief executive, Nuttaphong Kunakornwong, highlighted that the residential sector is burdened by three major challenges that have persisted since last year: escalating household debt levels, an oversupply of residential properties, and a notable lack of consumer confidence. These challenges have not only affected sales but have also complicated the launch of new housing projects, in addition to being exacerbated by geopolitical uncertainties. He emphasized the difficulty of managing residential property sales under such adverse conditions, predicting a slow recovery for the market that could take several years. To address these challenges and mitigate risks, SC Asset is exploring investments outside of property-related ventures, indicating a desire for business diversification. In the second half of the current year, the company intends to introduce a new branding strategy, including a fresh logo, to appeal to a wider demographic of consumers. With this plan, SC Asset aims to enhance customer engagement through integrated services designed to better meet consumer needs, including a home service app and a utility token aimed at creating a more comprehensive offering for its clientele. Moreover, the company plans to strengthen its presence in services associated with recurring income, particularly targeting the hotel and industrial estate market segments that have shown promising growth. As SC Asset progresses through 2025, it is set to launch two new hotels: Kromo Bangkok and The Standard Pattaya, developed through collaborations with established construction partners. Additionally, the company will unveil three large-scale warehouse projects to enhance its logistics capabilities and increasing rental income, especially in the U.S. apartment market where SC is already involved with multiple projects. However, it will not pursue new office space investments due to market overcapacity highlighted by existing office buildings totaling over 119,000 square meters. While the company has planned 15 new residential projects for 2025, a decrease from last year’s projections, the investments are modest relative to the already saturated market. This cautious approach reflects the ongoing struggle of the residential market, which, according to Mr. Nuttaphong, could take five years to stabilize as it works through current excess supply. Overall, these strategic adjustments by SC Asset Corporation reflect a broader trend among property developers grappling with unfavorable conditions and changing market dynamics, marking a pivotal moment in the company’s operational strategy and long-term planning.