The real estate market in Thailand is sluggish due to an oversupply of homes, especially in Bangkok and its metropolitan area. Additionally, high household debt discourages financial institutions from issuing loans. Therefore, businesses must adapt quickly, presenting a challenge for Ornsirin Holding Public Company Limited (ORN). The company has shifted from focusing solely on building homes for sale to creating new attractions to facilitate easier home sales, including international schools and community malls.
Predikorn Boonrunupakorn, Chief Executive Officer of Ornsirin Holding Public Company Limited (ORN), explained that 2026 will be more than just a real estate brand year, as the company plans to expand into new businesses. Following the launch of Mill Hill International School in 2025, this year it also launched The Backyard community mall in Chiang Mai (opened in February 2026) and plans to expand further into the southern region. Revenue from these new businesses is expected to start from Q1 2026 onward.
For 2026, the company plans a 245 million baht investment budget to acquire additional land. The sales target remains a 20% annual growth, anticipating 2.949 billion baht in sales this year, with three new projects totaling 2.634 billion baht, including
Regarding backlog, 2025 stood at 3.1 billion baht, with a 2026 target of 3.4 billion baht, and sales targets at 2.949 billion baht—higher than 2025's target but lower than the actual sales of approximately 3.5 billion baht achieved last year.
Despite high risks and challenges in the real estate market, Akkadet Udomsirithamrong, Deputy Chief Executive Officer of ORN, shared that the company initially thought offering tuition discounts after home purchases would attract buyers. However, the presence of schools and community malls has made selling homes easier.
Though revenue from international schools (currently with about 130 students) and community malls may not be substantial or grow rapidly, possibly requiring 3-5 years to see clear income, these two business segments generate traffic and create differentiation that facilitates customers' decisions to buy ORN homes. The company may apply this model further in Phuket and Samui (with studies ongoing in Pattaya), partly due to a large foreign customer base (58%) expected to grow.
In the future, revenue from new businesses is expected to increase, projected at 20.2% in 2028, up from an estimated 6.9% in 2026.
When asked which business generates the most profit, Akkadet replied, “Net profit is highest from the school because it is exempt from corporate income tax. However, for the school to be clearly profitable, certain conditions must be met, such as having sufficient students; for example, reaching 300 students is expected to cover personnel costs.”
However, expanding new businesses that do not generate high short-term income (compared to immediate revenue from home sales) requires ORN to issue bonds to raise additional capital. The company has also recently secured sustainable finance loans from commercial banks at lower interest rates. Liquidity remains sufficient since the current model usually achieves 50% sales before starting construction.
Additionally, ORN is aggressively entering the secondary home market through a partnership with an asset management company (AMC). The company has already placed deposits and acquired 10 units (85% houses and 15% condominiums) currently under renovation, with revenue expected to begin in Q2 2026.
Predikorn explained that the company has a clear policy on sustainability and is fully transitioning to green building development. Recently, it was appointed as the first EDGE Champion in northern Thailand's real estate sector and has received EDGE certification for projects like Habitat Mahidol and The Next Jed Yod 3. The company has started adjustments from the design phase and implements systematic waste management on construction sites.
It selects construction materials and other elements that reduce environmental impact, such as using heat-reflective exterior paint to lower indoor temperatures and using Acc Block walls to reduce carbon emissions. It also incorporates air filtration systems for both intake and exhaust.
Going forward, the company plans to extend these practices to other projects, aiming aggressively for at least 80% of new projects to be EDGE Certified by 2027. The company has also received Green Finance support from Kasikornbank, in collaboration with IFC, to assist with EDGE green building assessments.
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