Home Builder Association (HBA) has revealed that the overall market for home building in the first half of 2023 has seen a reduced decline from 15% to 7%. Three segments of home prices are identified: 'rising – stable – declining'. Homes priced below 10 million baht are gaining momentum due to real demand, leading to a recovery in growth. The 10-20 million baht segment remains 'stable', while homes priced above 20 million baht have seen a 15% decline. Looking forward to the third quarter during the high season, attention is on 'increased labor costs – Trump tax' which may affect construction costs as the year ends. The association is also ramping up consumer awareness, showcasing their strengths of being 'professional – trustworthy – comprehensive services', alongside organizing a major event, Home Building and Materials EXPO 2025, from September 10-14, 2025 at Impact Muang Thong Thani, Hall 6.

Mr. Anantakorn Amornwatee, President of the Home Builder Association (HBA), disclosed that the sales of member companies in the first six months of 2023 have shifted from a 15% decline in the first quarter to a 7% decline, primarily driven by real demand in the segment of homes priced below 10 million baht, which has shown recovery and growth compared to the first quarter amidst uncertainties in both domestic and international economic conditions and the current political situation.

Meanwhile, the market for homes priced between 10-20 million baht remains 'stable' without any positive signals to support recovery in this segment. Homes priced above 20 million baht have contracted more than the first two segments, with a 15% decline.

“Consumers looking to build homes below 10 million baht are doing so for actual residence, and those with purchasing power already have savings. They are concerned about potential increases in construction costs due to various factors, including labor and construction materials, which has influenced their decision to build recently. In contrast, homes priced above 20 million baht, while appealing to high-income buyers, are often second or third homes, leading to delays in building decisions as they wait to reassess the overall economic situation. The 10-20 million baht segment remains stable due to a lack of confidence in the economy and both domestic and international politics, with most buyers not seeking their first home, thus opting to wait. The decisions of consumers across these three groups will be crucial to monitor in the third quarter of this year,” Mr. Anantakorn stated.

Additionally, when analyzing specific regions, it was found that Bangkok and its vicinity have experienced the most significant contraction at around 30%, while the eastern region has seen an overall growth of about 3%, with Chonburi being the most robust market. The southern region has grown approximately 8%, particularly in Phuket and Songkhla, while the northern region overall has contracted by about 12%, with only Chiang Mai managing to remain 'stable' in the current economic climate.

In the northeastern region, the overall home building market has declined by 20%, although Nakhon Ratchasima has managed to grow by about 11%. The central and western regions are considered to be stable.

Mr. Anantakorn emphasized that given the overall market situation in the first half of the year, the association must accelerate activities and communication to enhance consumer awareness through its members in both Bangkok and provincial areas, focusing on construction standards, comprehensive services, experience, and expertise in home building, as well as differentiating from contractors to foster better understanding.

“In the past, our members in provincial areas have organized events for their zones to stimulate purchasing power and communicate to consumers how the home building business differs from contractors, resulting in increased consumer choice in some areas and better growth in certain provinces,” Mr. Anantakorn noted.

For the upcoming consumer awareness activities by the association, they will take place in the third quarter during the “Home Building and Materials EXPO 2025”, which will be held this year under the concept of “Build, Live, Well”, clearly reflecting the image of building homes with professional builders, experienced companies, and quality homes that promote a good living environment. The event will be held from September 10-14, 2025 at Impact Muang Thong Thani, Hall 6.

“If consumers are considering building a home, it is advisable to research the history and work of the company, including how many homes they have built and to inquire with customers who have previously built homes with member companies of the association. This will help build confidence in using their services, especially in the third quarter, which is considered the high season for the home building business. We believe that consumer purchasing power will return due to the genuine demand for homes, with construction prices remaining at the original cost in the third quarter, while there is a tendency for construction costs to rise towards the end of this year and next year due to the announcement of raising the minimum wage from 350 to 400 baht, along with potential increases in material costs due to the impact of the Trump tax,” Mr. Anantakorn concluded.