Real Estate Information Center, Government Housing Bank reported that the Standard House Construction Price Index for Q4 2022 stands at 131.9, reflecting a decrease of -0.2% compared to Q3 2022 (QoQ) and an increase of 5.6% compared to the same period last year (YoY). The rise in the index is attributed to increased compensation in the categories of construction design and systems, with the highest increase seen in structural engineering at 6.1% compared to the same period last year.

Dr. Vichai Viratthakhan, Acting Director of the Real Estate Information Center, Government Housing Bank stated that the categories of construction materials that saw price increases include six items: sanitary ware, wood and wood products, steel and steel products, other construction materials, electrical and plumbing equipment, and concrete products. Notably, the price of sanitary ware increased by approximately 13.2% compared to the same period last year (YoY) due to high oil prices, which directly impact the production and transportation sectors of construction materials, leading to a transfer of increased costs to the prices of newly constructed housing during this period.

Overall, it can be observed that the changes in the Standard House Construction Price Index are entering a phase of slower growth, both quarterly and compared to the same period last year. For instance, the compensation rate for sanitary systems decreased by -0.4% compared to the same period last year (YoY) and dropped by -1.5% compared to Q3 2022.

Additionally, the costs of some construction materials have decreased, including tiles, which saw a price drop of -3.4% compared to the same period last year. Meanwhile, several items have started to decrease in price compared to the previous quarter, including concrete products down by -0.8%, steel and steel products down by -3.1%, and electrical and plumbing equipment down by -0.8% compared to Q3 2022 (QoQ), while labor costs remained unchanged compared to the same period last year.

 

When analyzing the costs of construction work in each category, it was found that:

Construction Design and Systems

  • Structural Engineering saw an increase in compensation of 6.1% compared to the same period last year (YoY) but decreased by -0.9% compared to Q3 2022 (QoQ), accounting for 28.6% of the design and systems category.
  • Architecture experienced a compensation increase of 5.7% compared to the same period last year (YoY) and a slight increase of 0.1% compared to Q3 2022 (QoQ), representing 65.0% of the design and systems category.
  • Sanitary Systems saw a compensation decrease of -0.4% compared to the same period last year (YoY) and a decrease of -1.5% compared to Q3 2022 (QoQ), accounting for 2.8% of the design and systems category.
  • Electrical and Communication Systems experienced a compensation increase of 5.1% compared to the same period last year (YoY) and a slight increase of 0.1% compared to Q3 2022 (QoQ), representing 3.6% of the design and systems category.

Construction Materials

  • Wood and Wood Products saw a price increase of 9.5% compared to the same period last year (YoY) with no change compared to Q3 2022 (QoQ), accounting for 16.3% of the construction materials category.
  • Concrete Products experienced a price increase of 2.5% compared to the same period last year (YoY) but decreased by -0.8% compared to Q3 2022 (QoQ), representing 4.3% of the construction materials category.
  • Steel and Steel Products saw a price increase of 7.5% compared to the same period last year (YoY) but decreased by -3.1% compared to Q3 2022 (QoQ), accounting for 5.9% of the construction materials category.
  • Tiles experienced a price decrease of -3.4% compared to the same period last year (YoY) as manufacturers received special pricing from factories and reduced prices to maintain their customer base, with no change compared to Q3 2022 (QoQ), representing 3.1% of the construction materials category.
  • Sanitary Ware saw a price increase of 13.2% compared to the same period last year (YoY) with no change compared to Q3 2022 (QoQ), accounting for 2.0% of the construction materials category.
  • Electrical and Plumbing Equipment experienced a price increase of 3.4% compared to the same period last year (YoY) but decreased by -0.8% compared to Q3 2022 (QoQ), representing 3.8% of the construction materials category.
  • Other Construction Materials saw a price increase of 3.9% compared to the same period last year (YoY) with no change compared to Q3 2022 (QoQ), accounting for 24.6% of the construction materials category.

Labor Labor costs remained unchanged compared to the same period last year.