Unprecedented momentum at the Home Building and Materials Expo 2022 "Build-Change-the World" The Home Builders Association (HBA) announced that the event shattered the record for home construction bookings, reaching 4.3 billion baht, the highest in 18 years, with a growth of 27% compared to last year. Over 12,000 people attended the event, with popular house designs priced between 2.5-5 million baht accounting for 40.2%, followed by those priced between 5-10 million baht at 34%. This strong demand is driven by rising "construction costs," with minimum wage increases of approximately 5-6% since October 1, 2022, resulting in a 1.5% rise in construction labor costs per house.

Mr. Worawut Kanjanakul, President of the Home Builders Association (HBA), revealed that the Home Building and Materials Expo 2022 "Build-Change-the World," which concluded from September 14-18, 2022, at Impact Hall 6, Muang Thong Thani, received an unexpectedly positive response with record-high bookings, the most since the event's inception over 18 years ago. The total value of home construction bookings reached 4.3 billion baht, a 27% increase from last year's event, and it is expected that there will be an additional 2 billion baht in home construction orders following the event. Throughout the five days of the event, interest surged with 12,000 attendees, a 20% increase compared to the target of 10,000 people.

“The response from those looking to build homes this year exceeded expectations, largely due to comprehensive promotion across all channels and attractive offers from home building companies. Many companies showcased new, beautiful house designs, predominantly modern styles that are unique and different from previous models. Additionally, several home building companies from provincial areas participated this year, adding diversity and covering service areas almost nationwide. This year, we noticed a significant number of attendees from provincial areas interested in building homes,” Mr. Worawut stated.

Visitors showed great interest in energy-efficient house designs, both from the booths of home building companies and the exhibition booths showcasing materials and components for energy savings. This is a new area where the association still needs to educate consumers and train member companies to implement these practices effectively in the future.

The popular house prices and the highest number of bookings can be categorized into five price ranges: houses priced below 2.5 million baht accounted for 2.8%, 2.5-5 million baht accounted for 40.2%, 5-10 million baht accounted for 34%, 10-20 million baht accounted for 15%, and houses priced over 20 million baht accounted for 8%.

Comparing the booking data from 2021, there was a significant decrease in bookings for houses priced between 2.5-5 million baht, which dropped by 15%, while the demand for houses priced between 10-20 million baht increased by 28%, and those priced over 20 million baht saw a 13% rise in demand.

“Overall, the home building market in the last quarter of 2022 is still performing well, as evidenced by the increased home construction bookings at the Home Builder Expo 2022, particularly for houses priced between 10-20 million baht, which showed the highest growth. We also see positive signs of demand expansion in provincial areas, especially in the Northeast and Eastern regions,” Mr. Worawut added.

Mr. Worawut stated that the record-breaking booking success in 18 years, along with new house designs and special offers, is also driven by the rising "construction costs." The minimum wage increase of approximately 5-6% since October 1, 2022, will lead to a further increase of about 1.5% in construction labor costs per house.

Regarding construction material prices, many types are expected to rise due to increased import raw material costs from a weakening baht and rising labor costs, which will also elevate production costs. Additionally, the anticipated rise in interest rates will significantly impact decisions to build homes priced below 5 million baht.

Meanwhile, the risks from the ongoing war between Russia and Ukraine raise concerns that oil prices may increase further, directly affecting the production and transportation of construction materials. “Overall, the home building market in 2022 is valued at approximately 12.5 billion baht, reflecting consumer spending on housing as the COVID-19 situation begins to ease compared to the previous 1-2 years,” Mr. Worawut concluded.