After introducing SCG Heim modular homes priced at 10 million baht a unit a few years ago, Siam Cement Group (SCG) launched new designs priced 40% lower to tap the middle-income market, aiming for sales of 240 units this year.

An artist’s conception of the SCG Heim Retreat modular home that will offer 234 square metres.

Wachirachai Koonamwattana, the managing director of SCG-Sekisui Sales Co, a subsidiary of Thailand's top industrial conglomerate, said the new designs with a starting unit price of 5.9 million baht will grab market share in the self-built home market.

Last year, about 2,500 units in this price range were newly registered with the Lands Department. Some 500 units were built by homebuilders and the rest by individual contractors.

"Self-built homes often face an uncontrollable budget, and labour shortages are now a big problem," said Mr Wachirachai. "SCG Heim homes have a fixed price on the first day and are completed on schedule, as they depend less on labour."

After piling work, it takes about four months to complete an SCG Heim home, he said.

SCG Heim touts worry-free construction, high indoor air quality and an earthquake-safe steel structure. After-sales service and routine check-ups are available throughout 20 years of living.

The previous series launched a few years ago was aimed at professional or specialist customers, so unit prices were quite high.

To get the lower unit price, the new Smart Series is redesigned and resized to 234 square metres from 400 sq m.

Of the 240 units expected this year, 70% will be self-built by homeowners who have their own plot and 30% will be in joint housing projects with developers, starting with Property Perfect Plc (PF).

Founded in late 2009, SCG Heim _ a partnership of SCG Building Materials and Sekisui Chemical Co (Japan) _ recorded sales of 130 units worth a combined 1 billion baht.

About 50 units were built in PF's three projects, while the rest were self-built by homeowners.

Late last year, the Thai and Japanese partners spent 2 billion baht to build an SCG Heim plant on 100 rai in Saraburi province with an annual production capacity of 1,000 houses, starting production earlier this month.

Toshiya Nomura, the managing director of Sekisui-SCG Industry, said the firm will eye Asean markets in the next few years using the Thai production base and SCG's network in the region.

"In the next step, we will introduce the energy-conserving home that is popular in Japan and a large market segment," he said yesterday.

Last year, Sekisui recorded sales of 12,000 Heim modular homes in Japan, 90% of which were fitted with solar panels and a battery bank costing an additional 2 million yen (615,000 baht).

The instalments were encouraged by government subsidies including compensation for the equipment and an electricity buy-back programme.

Homeowners will reach the break-even point within eight years.