SC Asset Corporation is calling for the extension of foreign leasehold terms to at least 60 years, aiming to attract international investment amid a prolonged market downturn. The company sees tourism as Thailand’s most reliable economic driver, and believes securing foreign demand through long-term leaseholds could support the property sector.
Chief executive Nuttaphong Kunakornwong noted that Thailand’s population is aging and expected to shrink within ten years. To counter this trend, he said Thailand must increase its appeal to international buyers. He proposed leasehold terms of 60 years or more, with flexibility for 90 or even 99 years.
Despite temporary housing measures, such as reduced transfer and mortgage fees for homes under 7 million baht and loosened loan-to-value rules, Nuttaphong said broader policies are needed. He urged the government to implement support targeting the upper market, which accounts for half of housing demand.
SC remains focused on luxury homes priced above 20 million baht, where mortgage approval rates remain stable. The company leads this segment and continues to see strong buyer interest.
However, the overall residential market is facing significant challenges. The company expects the downturn to last until at least 2027, citing three major obstacles: weak economic growth, high household debt, and an oversupply of low-rise housing.
During the pandemic, low-rise home demand in Greater Bangkok rose from 90 billion to nearly 200 billion baht a year before dropping to 150 billion. Many developers entered the market, resulting in excess inventory and longer absorption periods, now averaging five years instead of three.
SC’s strategy focuses on inventory clearance, reduced project launches, and cash preservation. The firm is also shifting resources into recurring income and innovation-based services. It aims for these new revenue sources to contribute over 25% of net profit by 2030.
The company recently acquired five apartment buildings in the United States, valued at over US$100 million, with more than 95% occupancy. This move supports SC’s effort to diversify income through stable rental assets in developed markets.
Domestically, SC is investing in hotel and logistics assets while expanding into wellness-oriented services. Nuttaphong emphasized the importance of brand trust, strong reserves, and a mixed portfolio to navigate uncertain conditions.
He said that attracting foreign interest should be part of a national economic strategy. With housing contributing over 10% to GDP, targeted support for international buyers could help stabilize the sector. He advocated for decisive, time-bound incentives to rebuild confidence and stimulate long-term investment.
