In a notable shift amidst a cautiously recovering Thai economy, SC Asset Corporation Public Company Limited is ramping up its focus on the luxury real estate market, with plans to launch more than 50% of its new projects aimed at affluent buyers in the price range of 20 to 100 million baht.

The company has articulated a strategy to bolster its offerings in high-end properties, underscoring an increasing demand within this segment.

According to Mungkud Techolarn, Chief Operating Officer of SC Asset, the company plans to roll out 12 new low-rise projects in 2025, with a total value exceeding 18 billion baht.

SC Asset targets sales of 18.8 billion baht for the same year, driven primarily by the introduction of luxury homes priced between 30 and 80 million baht.

Of these, 756 units are slated for development in locations identified as 'Blue Ocean', which include Pin Klao-Brom Ratchachonnanee, Ratchaphruek, Bang Na, and Krungthep Kreetha.

An emerging project, Grand Bangkok Boulevard at Suk Sawat-Rama 3, has already seen pre-sales of 18 units out of 46 prior to its official launch, with prices ranging from 40 to 138 million baht.

The company indicates that more than 50% of its new offerings scheduled for 2025 will feature homes starting at 20 million baht, while those priced between 10 to 20 million baht will represent more than 75% of their new listings.

Despite a cautious sentiment regarding overall property development, with a keen eye on location and market trends, SC Asset has adapted its selling strategies to include properties that are currently under construction—a departure from the pre-COVID-19 practice of selling only completed homes.

This change responds to an expanding supply in the market, allowing for earlier sales while still maintaining rigorous quality control and guarantees.

The luxury home segment focuses significantly on customer preferences, emphasizing convenient locations near schools and accessible transport.

The company continues to strategically plan land acquisitions annually and engage in timely development to meet market demands.

Mungkud also noted that the average sale price for homes targeted at businesses, often suitable for multi-generational families, is around 50 million baht per unit, with a total target of 900 million baht in sales for their high-end offerings.

In addition to these luxury initiatives, SC Asset has announced a forthcoming project under the brand Sonle Residences, set to launch in July 2025, which will feature five sophisticated modern tropical-style homes priced from 200 million baht.

This further diversifies the luxury portfolio towards affluent clientele.

Currently, the overall sales of single-family homes may have experienced a slight decline in January 2025; nevertheless, demand within the luxury segment, particularly in prime areas such as Ratchaphruek and Bang Na, remains robust.

The customer base in this market generally exhibits lower mortgage rejection rates compared to other segments, with SC Asset's rejection rates reported at approximately 10% in 2022, decreasing to about 7% in early 2025.

Industry experts anticipate that any easing of Loan-to-Value (LTV) regulations could positively impact sales, particularly among buyers purchasing second and third homes.

Interestingly, around 60-65% of transactions within the luxury segment are made in cash, outperforming the overall company cash purchase rate of about 40%.