SET-listed developer SC Asset Corporation is adapting to a sluggish housing market, offering rent-to-own options for buyers struggling to secure mortgages and selling show units from the start of project launches.
Chief executive Nuttaphong Kunakornwong said the economic slowdown has softened housing demand, leaving some prospective buyers unable to afford a home and others delaying their decision despite having sufficient means.
“We must take every reasonable step that helps customers move forward,” Mr Nuttaphong said, adding that hesitation and weaker purchasing power are increasingly shaping the market.
“We start with customer behaviour — preferred locations, desired features and technologies — and adjust our projects accordingly rather than beginning with financial considerations.”
In recent months, SC has begun offering rent-to-own schemes for customers interested in its residential units, but unable to secure mortgage approval. These people are likely to qualify for mortgages within a few years, he said.
“This approach provides short-term relief, giving those who can’t secure a loan but can afford monthly rent a place to live, while allowing rental payments to be converted to mortgage payments,” said Mr Nuttaphong.
“Developers with strong balance sheets can afford to wait for this money — and it is certainly better than losing the customer altogether.”
Looking ahead, he said more occupants will be tenants rather than buyers, while most purchasers will be investors.
“This model means we will hold the properties, place tenants in them and eventually sell the portfolio to investors while continuing to provide warranties and related services,” said Mr Nuttaphong.
“There is rising rental demand among Gen Z and younger groups. As more customers choose to rent, we must shift our focus. In the future, the occupant and the buyer may not be the same person — the occupant will be a tenant and the buyer an investor.”
He said GDP growth of 2% this year is making it difficult for prospective homebuyers to make decisions. If growth escalated, the household debt-to-GDP ratio would fall, making mortgage approval easier.
“The economic slowdown may continue for another two years, with a recovery likely in 2028,” said Mr Nuttaphong.
“During this period, housing supply will shrink as new launches remain limited due to banks’ greater caution in providing project loans.”
Another strategy shift is selling show units of single detached houses at the outset of launches.
Typically these homes are kept as display units and sold only near the end of a project.
The first project where SC released a show unit for sale was Grand Bangkok Boulevard Donmueang-Chaengwattana in Nonthaburi.
The fully furnished single detached home priced at 100 million baht was purchased by influencer Ratchanok “Janey” Suwannaket, who recently made headlines for live-streaming product sales from the house.
“She visited the project and wanted our show unit because she wanted to move in immediately,” said Nattagit Sirirat, senior executive vice-president for marketing and innovation.
“After booking the unit, she completed the transfer within just two weeks.”
This sale also signalled to SC that offering show units can help qualified buyers secure a single, comprehensive home loan, without requiring further financing for interior design and fittings.
If buyers purchase an unfurnished home, they can obtain financing only for the unit itself, while any interior work must be financed separately, typically at a higher interest rate, according to the developer.
Despite unfavourable sentiment this year, even during the fourth quarter, which is usually high season for home sales, SC is proceeding with its launch schedule.
This weekend the company plans to unveil Bangkok Boulevard Vibhavadi-Phaholyothin 2 on a 51-rai plot on Phahon Yothin Road in the Rangsit area. The project comprises 163 units priced between 13.5-25 million baht.