SET-listed developers with a large portfolio of residential properties are shifting towards the homebuilding business in a bid to capture the self-built home market valued at 211 billion baht, amid a slowdown in housing development.
Sanith Adhyanasakul, chief executive of Property Perfect Plc (PF), said the company will expand into the self-built home market this year, targeting mid-range homes priced at 5 million baht and above, as well as high-end customers with strong purchasing power.
"Expanding into the self-built home market offers an opportunity to generate additional revenue from a sector valued at 211 billion baht last year," he said.
PF plans to serve clients seeking self-built homes in Greater Bangkok and the three provinces in the Eastern Economic Corridor (EEC), which have high growth potential, said Mr Sanith. The firm plans to utilise a prefabricated system to ensure faster and more reliable construction.
Pruksa Holding Plc also plans to tap the homebuilding market, leveraging its precast production and construction businesses under its Inno Home Construction subsidiary to support the expansion.
Thongma Vijitpongpun, acting group chief executive of Pruksa Holding, said the company aims to generate 1.6 billion baht in revenue from the homebuilding venture, which will begin this year.
This will account for 30% of the overall 5.4-billion-baht target for Inno Home Construction, with the other 70% coming from the construction of residential projects for the company.
"Self-built home design may start with our own designs, targeting unit prices ranging from 10 to 30 million baht," Mr Thongma said.
"Alternatively, if customers only want the precast system, we can offer both the precast pieces and installation services. We can complete the construction within three months, compared to six months or more by general homebuilders."
Peerapong Jaroon-ek, chief executive of Origin Property Plc, said the company plans for Britania Plc, its low-rise housing development subsidiary, to tap into the homebuilding business as part of its 2025 strategy.
"This year is very challenging in terms of the Thai economy and global changes," he said. "We need to be flexible and will use all means to generate revenue amid the market slowdown."
The shift to the homebuilding business by Origin Property, Pruksa Holding and Property Perfect comes after all three companies saw a decline in revenue in 2024 compared to the previous year.
Origin saw the largest drop in revenue, with a 21% decrease to 11.9 billion baht, followed by Pruksa Holding, whose revenue fell 20% to 21 billion baht. Property Perfect's revenue declined by 17% to 9.4 billion baht.
Sansiri Plc, which saw a 2% increase in revenue to 39.2 billion baht, also plans to expand into the homebuilding business.
Sansiri launched its homebuilding service yesterday at the House and Condo Show held at Queen Sirikit National Convention Centre (QSNCC) in Bangkok, as it aims to attract interest from both prospective purchasers of self-built homes and homebuilders.
Anat Kittikulmethi, deputy managing director of Sansiri's project development department for low-rise, said that with Sansiri's growing precast business plan, the company has the capacity to serve individual clients, real estate developers and the construction business sector.
Sansiri will target its existing customers who want to build homes in Sansiri's style, landowners who value their locations and appreciate Sansiri's designs, and small-scale developers seeking professional standards for their small projects.