SET-listed developer SC Asset Corporation will continue shifting towards non-residential business, aiming to increase its contribution to net profit to 30% by 2030 from 20% last year.
Chief executive Nuttaphong Kunakornwong said the residential market has been unfavourable for several consecutive years due to slowing economic growth, high household debt and intensifying competition, particularly price wars in the low-rise housing segment.
"Prolonged conflicts are pushing up commodity prices, which will fuel inflation," he said. "Interest rates will be harder to cut, which could further slow the economy and make buyers more cautious in their sentiment and purchasing decisions."
After diversifying into non-residential development businesses including hotels, warehouses and rental apartments in recent years, SC will allocate 1 billion baht to expand hotels in Phuket and Pattaya, develop a warehouse in the eastern provinces and invest in solar energy.
Another 1 billion baht will be invested in a new venture -- wellness.
"The wellness business will be linked to our core business of residential development, while solar energy, which will be invested in through our subsidiary SCX360, will target both residential customers and data centres, a rapidly growing investment segment."
The remaining 6 billion baht from its total investment budget of 8 billion baht in 2026 will be allocated to the residential development business.
This year, the company will launch six new residential projects worth a combined 28.5 billion baht, down from 15 projects but slightly higher in value terms than the 28.1 billion baht seen last year.
Two projects, worth a combined 25.6 billion baht, will be condominiums, one of which will be a branded residence on a plot on Rama IV Road opposite Lumpini Park, where the Srifuengfoong Building was previously located.
The remaining four projects, worth a combined 2.85 billion baht, will be low-rise housing, with 95% priced at more than 20 million baht per unit and 5% priced between 5-10 million baht.
SC expects to generate 27 billion baht in presales in 2026, up 33% from 20.3 billion baht last year, which was a 19% decline from the previous year. Of the target, 60% will come from low-rise houses and 40% from condominiums.
The company targets 25.5 billion baht in revenue, up from 20.2 billion baht in 2025, which had slipped 0.3% year-on-year. Of the total, 63% will come from low-rise houses, 28% from condominiums and 9% from recurring income.
Recurring-income properties include 545 hotel rooms in Bangkok and Pattaya, 200,000 square metres of warehouse space in Samut Prakan, 120,000 sq m of lettable area across four office towers, and 74 apartment units in Boston in the US.
Last year the company recorded 1.2 billion baht in revenue from recurring-income properties and it expects this to grow by 70% to 2 billion baht by the end of 2026, driven by new hotels and warehouse space.
In the second half of the year, it will launch a rental model called Genscription to cater to customers who want to rent before buying, rent before relocating, or rent long-term, as some homebuyers are facing difficulties in securing mortgage approvals.
