The Nation is reporting that Seacon Home has decided to expand its home-construction service into the high-end, luxury residences segment where demand from property firms continues to grow. The company is targeting revenue of THB1.6 billion in 2016 with hopes that the move into the high-end market will help increase its business.
“We expanded into this market segment when we saw [rising] demand for construction of high-end homes,” Supitcha Chaipipat, Seacon Home managing director, said at a press conference. “We are targeting revenue from the new business to reach 25 percent of our total revenue within five years.”
The company hopes THB300 million of its THB1.6 billion target will come from its new business of building homes for developers with the reaming coming from its existing business of building housed for individual customers who want to build on their own land.
Supitcha noted that building luxury homes for property firms was the next logical move for Seacon Home as it looked to increase its business. A large number of developers are looking for a professional team to construct their houses and Seacon Home has the necessary experience they are seeking. The Nation added that the firm has experience constructing dormitories, apartment buildings and small and medium-sized housing projects.
“We expanded to that level by partnering with companies that already have land and need to develop it for sale, rental, or private commercial use. These partners are categorized as small and medium-sized enterprises that have few units,” she said. “This is an effort to see our business have sustainable growth for the long term at a time when demand from individual customers who own land and need to build a home is seeing slim growth.”
The Nation added that the company is currently building homes in three residential projects for property developers. Seacon is working on Natural Living Property’s Miracle Five development in Khao Yai as well as The Estate, a 50-unit townhouse project in the On Nut area of Bangkok, and the Bangkok-based project The Edition.
