"Closure of construction worker camps" as announced in the Royal Gazette mandates a halt to construction work, prohibits travel, and restricts the movement of labor for at least 30 days. This 30-day closure of construction camps and the suspension of construction activities significantly impacts the business.

           Three real estate associations, namely the Thai Real Estate Association, the Thai Condominium Association, and the Housing Business Association, held a discussion to address the issues and solutions regarding the "closure of construction worker camps" in high-risk areas for one month, in line with the disease control measures of "Bubble and Seal" due to severe COVID-19 outbreaks. This has rendered construction activities impossible, affecting the construction and real estate industries in Thailand, including housing projects and condominiums currently under construction.

            Mr. Pornarit Chuanchaisit, President of the Thai Real Estate Association, stated that the one-month closure of worker camps has a growing impact, especially as the housing market has already been affected. The closure exacerbates the damage, and there is uncertainty about whether the measures will be extended due to the continuously high number of infections. Projects scheduled for completion and transfer in the second half of the year may have to postpone transfers, resulting in lost income for operators, who also face rising construction costs due to fluctuating material prices and the risk of penalties from clients for late delivery or cancellations.

"This round has caused the entire industry to suffer due to the measures implemented, halting all construction activities immediately. We hope that the measures will align in the same direction, as we are ready to ensure effective disease control as operators."

Currently, discussions are ongoing with the Department of Health to study and establish measures for the private sector regarding the management of camps when they reopen, to assure the government and ease some restrictions, such as allowing construction and inspections to proceed, in conjunction with the government's "Bubble and Seal" measures. However, there are concerns that if the number of infections remains above 5,000 per day, there may be risks of not receiving any relaxation of measures.

We understand the behavior of workers in the camps very well. Waiting for vaccines to be administered in the camps is not feasible as there are currently not enough vaccines for the public. Therefore, we are seeking ways to propose to the government, ready to cooperate in preventing outbreaks in worker camps.

      Dr. Apa Artaboonwong, President of the Thai Condominium Association, remarked that the "closure of construction worker camps" is a shocking development for the real estate business. Currently, all operators are uncertain about how to adapt to this crisis, and the impact is expected to be immense. A halt in construction, whether for 15 days, 30 days, or longer, causes damage throughout the system. If we assess the real estate business as a whole annually, the average value is about 900 billion baht. Considering a one-month halt, the loss could be around 70-80 billion baht, affecting everything from upstream businesses to downstream, including material production factories and numerous furniture businesses.

"The impact of halted construction also means that the transfer of projects requiring residential handovers to clients may need to be postponed, affecting the income of real estate operators. Additionally, operators face risks from clients who may use this as an excuse to cancel and request refunds or incur penalties for delayed project deliveries, leading to significant repercussions."

Therefore, we propose to the government to relax these measures, using targeted controls to allow construction to continue overall. For instance, separating COVID-19 infected workers from those who are not, and urgently allocating vaccines to workers in camps alongside testing, is a fair approach that addresses the root cause to prevent future issues.

Projects currently under construction are undoubtedly affected. Ensuring liquidity is crucial as there are debts and interest payments to meet, and concerns are already rising as the real estate business is being closely monitored by financial institutions as a high-risk and vulnerable sector.

Moreover, for certain construction tasks that take a short time (1-3 days) and require only a few workers (1-3), such as defect rectification for clients before handover, we hope the government will consider allowing these to proceed so that operators can deliver rooms or houses to clients on schedule, thus generating income.

      Mr. Wasan Kheangsiri, President of the Housing Business Association, stated that the one-month closure of worker camps impacts all sectors related to real estate at every level. If we estimate the damage solely from the costs incurred in construction projects halted for one month, it could be around 12 billion baht/month. If the closure extends beyond one month, the potential losses increase. Therefore, the latest compensation measures from the government are still insufficient and do not cover the damages incurred during the month of halted construction.

Furthermore, house inspections cannot proceed either, as the measures cover all aspects. We see significant short-term impacts and hope for relaxation in camps without infections, and for camps in construction sites to continue working without needing compensation, thus reducing the tax burden on citizens and minimizing damages.

Additionally, there are proposals for addressing and preventing the spread of COVID-19 in worker camps. Real estate operators are ready to cooperate with the government without the need for camp closures, as addressing the root cause is crucial for resolving the issues. Collaboration between operators and the government will minimize damages and help the government save budget for compensating and supporting the real estate and construction sectors.

           However, the three real estate associations will discuss measures and strategies to prevent the spread of COVID-19 in worker camps to propose to the government for relaxing measures, ensuring that all real estate operators are ready to cooperate with the government in controlling the outbreak and allowing construction activities to continue, minimizing the impact on real estate operators and related businesses from this incident.