Seacon targets housing for civil servants amid economic slowdown
Bookings in the first nine months down 9% from last year
Seacon, Thailand's leading provider of comprehensive home-building solutions, has unveiled a strategic pivot to boost demand by focusing on civil servants and state enterprise employees.
The pivot is a result of the current economic headwinds affecting consumer spending.
Speaking at a press conference on Friday, managing director Manu Trakulwattanakit emphasised the distinct nature of the house-building sector compared to the real estate market.
"Our industry relies on genuine demand and immediate cash flow upon commencement of construction. People typically choose to build houses only when they feel financially secure," he explained.
Performance and strategic response
The company reported bookings of 1.06 billion baht in the first three quarters of 2024, a 9.5% decline year on year.
Notable bright spots included the successful launch of their Greenery Series home designs, which generated sales of 100 million baht within two months, and the steady performance of the Seacon Precast Factory, which produced approximately 20,000 pieces and contributed revenue of around 100 million baht, he said.
"Rather than waiting for market conditions to improve, we identified civil servants and state enterprise employees as viable target customers, given their employment stability regardless of economic conditions," Manu said.
New initiative for civil servants
Responding to the challenges faced by civil servants in affording premium housing, Seacon has launched a targeted "Your Home Series" campaign.
The initiative, beginning December 1, offers six house models priced between 1.39 million and 2.5 million baht, including both single-storey and double-storey options. A promotional interest rate of 2.50% will be available from December 1 to February 28, 2025, primarily targeting Bangkok and surrounding areas.
Manu highlighted the advantages for civil servants: "They already benefit from government support for land purchases at special rates. Moreover, their job security typically ensures preferential lending rates from banks."
With over a million individuals in this demographic, he views this pilot initiative as a potential new business model that could diversify their portfolio.
Sustainability commitments
Seacon has reinforced its commitment to sustainability through a comprehensive range of initiatives across its operations.
The company has implemented its "Reduce to Save" concept throughout the business, introducing energy-efficient staff uniforms made from Micro Block fabric and launching label-free, recyclable C2 Water bottles, he said.
At their semi-finished parts factory, the installation of solar panels with 100 kWp capacity demonstrates their commitment to renewable energy, he added.
The company's environmental consciousness extends to their choice of building materials, favouring hydraulic press bricks and formaldehyde-free insulation.
They have also adopted safer alternatives in their construction processes, replacing chromium with "Zirconium" and choosing SPC flooring over traditional wood options.
Market outlook and consumer trends
The company aims to achieve its annual revenue target of 1.2 billion baht, building on the 1.06 billion baht secured in the first nine months.
Manu noted that modern consumers are increasingly value-conscious and specific about their needs, particularly during the current economic downturn.
To address these concerns, Seacon has implemented cost management strategies, including operating their own semi-finished components factory.
As a member of the Home Builders Association, they offer customers tax benefits of up to 100,000 baht for homes valued under 10 million baht.
With over 63 years of experience and more than 25,000 completed houses, Seacon backs their work with a 20-year structural warranty.
Their current house-building portfolio, excluding the new civil servants initiative, ranges from 2.5 million to 70 million baht.
