Unfazed by economic slowdown, SC Asset going ahead with launches of 8 residential projects in second
Despite signs of a slowdown in the economy in the second half of the year, SC Asset Corporation, a property arm of the Shinawatra family, is going ahead with eight new low-rise projects worth a total of Bt10.85 billion to boost 2013 presales to Bt15 billi
Chief operating officer Kree Dejchai said demand for luxury homes had continued to grow, so the company would market detached houses and premium townhouses in the current half.
“Up to 50 per cent of people who buy luxury homes pay by cash rather than borrow from the banks, so there will be no negative impact from the banks’ current restrictions on new mortgages,” he said.
A third of the firm’s revenue comes from luxury homes with starting prices of Bt20 million, a third from the middle market starting at Bt5 million, and the rest from condominiums priced from Bt3 million to more than Bt5 million.
Three of the eight new projects will be Grand Bangkok Boulevard complexes, in Ratchada-Ram Indra worth Bt1.2 billion, Sathorn worth Bt2.3 billion, and Sathorn-Pinklao worth Bt1 billion.
Another three will be under the Life Bangkok Boulevard brand with starting prices of Bt5 million. They are on Rama V worth Bt600 million, Ram Indra worth Bt1.9 billion, and Ring Road-On Nut worth Bt1.2 billion.
There will also be a townhouse project under the Vista Park brand at Sathorn-Pinklao worth Bt850 million. The eighth is Boulevard Tuscany Cha-am-Hua Hin worth Bt1.8 billion.
SC Asset hopes these new projects will boost its total presales this year to Bt15 billion after the company recorded presales worth Bt6.8 billion in the first half. The full-year revenue target is Bt10 billion; for the first six months, it reported revenue of Bt4.43 billion and net profit of Bt509.27 million.
Kree said that given the expected sluggishness of the economy during the current half, the property market would likely face high competition in the middle market, where prices range between Bt2 million and Bt5 million. Meanwhile, the luxury market had fewer competitors but strong demand, as this segment has the purchasing power to resist an economic slowdown.
“We believe that this market will boost our sales to the target,” he said.
Currently, the luxury segment accounts for about 15 per cent of the property market value in Greater Bangkok. SC Asset believes it leads the luxury market with a share of up to 50 per cent, he said.
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