Build to Build Group, a home construction company, announces a significant increase in sales for the first half of the year, defying economic trends. They anticipate closing sales at 700 million baht for the first half of the year. With rising material costs, they are preparing to hold the largest event of the year, “Grand Site Seeing: Building a Home, You Must See the Home,” hoping to accelerate customer decisions on home construction before an average price increase of 7% in Q3/2023.

Mr. Sutee Ketsiri, Managing Director of Build to Build Group, revealed that the overall performance and sales of the company in the first five months have been quite satisfactory, showing significant growth compared to the same period last year, despite the sluggish domestic economy due to global economic conditions. This year, there has been a noticeable expansion in the high-end home market priced at 10 million baht and above, with more customers deciding to book home construction, followed by homes priced between 5 to 7 million baht, which continue to grow. The number of customer inquiries is also increasing, leading the company to believe that they will achieve sales of 700 million baht in the first half, out of a total annual sales target of 1 billion baht for 2023.

Due to the nature of the home construction business, customers typically require careful planning, land preparation, and selecting a trustworthy company before deciding to build a home. This means that even during periods of economic slowdown, if customers are ready and confident in the brand, it can motivate them to make a decision, especially among customers looking for homes priced at 10 to 20 million baht, who may not be as affected.

However, the rising costs of materials such as steel, stone, cement, sand, sanitary ware, and labor in the construction sector have increased by an average of about 10% due to the ongoing Russia-Ukraine war, which has impacted transportation, oil prices, and inflation. This has led to an inevitable increase in home prices, forcing most operators to gradually raise their home prices in line with significantly higher construction costs since the beginning of the year.

Build to Build has attempted to maintain home prices since the beginning of 2023, after recognizing the signals of rising prices for steel, oil, and other materials, as well as ongoing inflation. They have managed costs by stocking construction materials based on orders and anticipated customer demand, allowing them to keep prices stable over the past five months, alleviating some concerns for customers making home construction decisions.

However, given the current situation, the company anticipates that in Q3/2023, they will need to raise home construction prices to reflect actual costs, but they aim to keep the increase moderate, estimating an average rise of about 7%. The company does not want to burden consumers excessively but focuses on ensuring high-quality construction management, which is essential for sustainable cost management in the current economic climate.

To provide customers planning to build homes with an opportunity to get quality homes at reasonable prices before the price increase in Q3/2023, the company is organizing the largest event of the year, “GRAND SITE SEEING: Building a Home, You Must See the Home,” on Saturday, June 18, 2023, at their headquarters in On Nut 46. This event will not only allow customers to visit actual construction sites to experience the home-building process but will also feature promotions and special offers exclusively for customers who decide to build during this event, serving as a final promotion before the price increase. They believe this event will receive a positive response and further encourage customers to make home construction decisions.

Overall, in the second half of 2023, the real estate sector and the Thai economy will continue to face various challenges due to current impacts. However, there are positive signs from the COVID-19 situation, which is improving, leading to a full reopening that will help boost tourism and the economy. Yet, it must be acknowledged that the overall situation may not allow the economy to fully recover or return to normal within this year. Therefore, it will depend on how each operator manages and mitigates risks. In the home construction business, the key to surviving this crisis is building a trustworthy brand that customers can rely on for quality construction and service before and after sales, supplemented by promotions and special discounts to help customers make quicker decisions.