The Home Builder Association (HBA) <\/span><\/strong><\/span>indicates that the overall home construction market in Q2 is lively, benefiting from tax deduction measures for home construction <\/span><\/strong><\/span>‘10,000 Baht per Million’ <\/span><\/strong><\/span>, revealing that homes priced between <\/span><\/strong>2.5 - 5 million Baht are the most popular among consumers <\/strong><\/span><\/p>

Mr. Olar Chanphu, President of the Home Builder Association (HBA) <\/span><\/strong> <\/span><\/span>, disclosed that the overall home construction market in Q2 of this year shows a positive trend compared to Q1, where the market was stable due to rising interest rates, increasing household debt, and stricter lending policies from financial institutions, along with the absence of measures to stimulate the real estate sector to support the overall market. <\/span><\/span><\/p>

The association forecasts that the overall home construction market in Q2 will expand positively and be vibrant due to consumer confidence in the economic situation, as well as support from the tax deduction measure<\/span> “Home Construction Tax Deduction of 10,000 Baht per Million” <\/span><\/span><\/strong>, which grants personal income tax deductions for those building new homes, with the contract signing and construction start dates set from April 9, 2024, to December 31, 2025. Consumers who build homes will receive tax deduction rights in the following tax year after the year the home is completed. <\/span><\/p>

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Additionally, the overall economy is being stimulated, along with investment promotion in various projects, leading to a significant improvement in the overall situation. Consumer confidence is beginning to return after previously delaying home construction decisions indefinitely. There is also the factor of the trend of rising construction material prices, which may directly increase construction costs by about 5-7%, making it easier and quicker for consumers who plan to build homes to make decisions.<\/p>

Amid the expansion of the home construction market in Q2 of this year, the association has laid out strategies to reinforce confidence and stimulate demand for home construction through its activities. They are preparing to hold the “Home Construction and Materials Expo 2024” <\/span>from September 18-22, 2024, at Impact Hall 6, Muang Thong Thani, with all member home construction companies participating to showcase new home designs. The event will cover an area of over 5,000 square meters, marking a significant year as it celebrates the 20th anniversary of the association.<\/span><\/p>

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In the first three months of 2024 (January-March), the association reported a total of 1,376 home construction orders nationwide, valued at approximately 2.177 billion Baht. Homes priced at 20 million Baht and above contribute the most value to the home construction market, while homes priced between 2.5 - 5 million Baht remain the most popular segment, with a growing trend expected in Q2 due to the stimulus from the government’s tax deduction measures for home construction.<\/span><\/p>

“The demand for home construction is expanding across all price levels, both in Bangkok and its suburbs, as well as in provincial markets, leading to confidence that the overall home construction market in Q2 of this year will become vibrant again and grow beyond expectations,” Mr. Olar stated.<\/p>