The Home Builder Association assesses the market situation for the first quarter of 2022, keeping an eye on factors such as the Russia-Ukraine conflict, COVID-19, labor costs, oil prices, construction material costs, inflation issues, and interest rate trends, which are expected to lead to a 5-8% increase in home prices in the future. Consumers are advised to seize the opportunity to build homes at current costs before adjustments occur. The association is moving forward with the Home Building and Material FOCUS 2022 event to meet all housing needs, showcasing trends in innovations and new home designs, along with special promotions from March 30 to April 3, 2022, at Impact Muang Thong Thani, Hall 8, aiming to stimulate a market worth 2.1 billion baht from bookings made at the event.

Mr. Worawut Kanjanakul, President of the Home Builder Association (HBA), revealed the business outlook for home construction in 2022, noting that the overall market showed positive signs in the last quarter of 2021, with a 20% increase in bookings for home construction at the Home Building and Material Expo 2021 held in late November 2021. In January and February 2022, there continued to be consumer interest in building homes, with inquiries coming from both Bangkok and surrounding areas as well as provinces.

“The previous Home Building and Material Expo 2021 received a great response, with many customers interested in building homes, leading to several companies being unable to keep up with demand. Member companies in Bangkok and surrounding areas also showed similar trends. This is partly due to the stagnation in Thailand during the second and third quarters of 2021 due to COVID-19 lockdowns in many areas. However, the demand for home construction remained. By late 2021 and into January 2022, people began to feel less anxious about the COVID-19 situation and started to adapt to living with it, leading to decisions to build homes. This revitalized the home construction business compared to other sectors that remained sluggish due to COVID-19,”

However, it is essential to monitor various factors that are expected to impact home construction costs, including the Russia-Ukraine war, rising oil prices, labor costs, construction material prices, inflation, and interest rate trends.

“From the above, we can identify 2-3 factors that need close monitoring, such as the increase in the minimum wage to 492 baht. Currently, most laborers earn above the minimum wage, with skilled laborers earning between 500-700 baht per day, while unskilled laborers earn around 331 baht. If the minimum wage increases, it will likely raise wages across the board, impacting future home prices. Additionally, there is already a noticeable labor shortage, partly because other countries are beginning to implement policies to import labor, with Thai workers being among the first targets,”

The association estimates that an increase in wages of 10-15% will not significantly impact home construction costs, but a rise of 30-40% would have considerable effects. Plans are in place to address this issue, starting with presenting the impacts on home builders at a meeting of the Real Estate and Construction Trade Association at the Thai Chamber of Commerce to assess the situation and gain a clearer overall market perspective. Furthermore, the association will gather market data to submit to the real estate information center, which will help the government better understand the self-built home market, valued at approximately 200 billion baht annually, representing about 20-25% of the total real estate market. If stimulated by government measures, this could drive a market turnover of 200 billion baht, contributing to the overall economic growth of the country.

Looking at the overall economic situation in 2021, GDP grew by 1.6% compared to a -6.1% decrease in 2020, indicating that purchasing power is returning in early 2022. It is expected that the home construction market for the entire year of 2022 in Bangkok and surrounding areas will not be less than 11.5 billion baht.

Mr. Anantakorn Amornwatee, Vice President for Special Activities, announced that the association is also preparing to stimulate purchasing power through the “Home Building and Material FOCUS 2022” event, which gathers leading home construction companies in Thailand to present comprehensive services, including new home designs and construction innovations. This year marks the 18th edition of the event, which consistently receives positive responses from those interested in building homes. Additionally, there are many attendees seeking information about home designs and construction materials or looking to learn about innovative construction material design. This year, we are confident that the booking value at the event will be similar to last year, around 2.1 billion baht.

Regarding safety measures for the event, the organizing committee prioritizes maximum safety, implementing four main safety protocols: vaccination, with organizers vaccinated with two doses; temperature checks for attendees before entering; adherence to international safety standards, including social distancing and mandatory mask-wearing; ensuring the venue is sanitized and certified for hygiene safety; and conducting antigen tests for organizers, who must be fully vaccinated and tested within 48 hours before the event. All these measures are standard safety protocols emphasized by the organizers for the safety of all attendees.

Additionally, special promotions at the event include exclusive loans from financial institutions. Those who register in advance will receive new home designs and plans in e-book format, discount coupons of up to 10,000 baht, and a chance to win gold bars worth over 150,000 baht when booking home construction at the event. The event is scheduled for March 30 to April 3, 2022, at the Impact Exhibition and Convention Center, Hall 8. Interested individuals can register in advance at https://www.hba-th.org/home_focus22.