The Real Estate Information Center (REIC) reported that the standard home construction price index for the first quarter of 2023 stands at 134.4, reflecting an overall increase of 3.5% compared to the same period in 2022. This rise is attributed to increased compensation across all categories of design and construction work, with the architectural category seeing the highest increase of 8.8%. Meanwhile, the construction materials category, particularly wood and wood products, as well as sanitary ware, rose by over 13.0% compared to the first quarter of 2022.

The Real Estate Information Center of the Government Housing Bank reported that the standard home construction price index for the first quarter of 2023 is 134.4, which is a 1.9% increase compared to the fourth quarter of 2022 (QoQ) and a 3.5% increase year-on-year (YoY). This index is calculated based on a two-story house design with a usable area of 169 square meters, assuming a construction period of approximately 180 days, including operational costs and VAT, but excluding land prices and land development costs. The increase in the index is due to rising compensation in all categories of design and construction work, with the architectural category seeing an 8.8% increase compared to the same period last year.

Dr. Wichai Wiratthakhan, Acting Director of the Real Estate Information Center at the Government Housing Bank, stated that all seven categories of construction materials have seen price increases compared to the same period in 2022, including sanitary ware, wood and wood products, tiles, steel and steel products, electrical and plumbing equipment, concrete products, and other construction materials. Notably, sanitary ware prices increased by 13.2% compared to the same period last year, while wood and wood products rose by 13.0%. This is likely due to high oil prices, which directly impact the manufacturing and transportation sectors of construction materials, leading to increased construction costs. Additionally, all items in the design and construction work categories have also seen price increases, contributing to the higher standard home construction price index for the first quarter of 2023 compared to the same period last year. However, labor costs remained unchanged this quarter.

Nevertheless, when examining the cost breakdown of construction work in the design and construction categories, it was found that all items have increased. The architectural work category, which accounts for 65.6% of the design and construction work category, saw compensation rates rise by 8.8% compared to the same period last year, marking the highest increase. It also increased by 3.0% compared to the fourth quarter of 2022. In contrast, the structural engineering category, which makes up 28.0% of the design and construction work category, experienced a 6.0% increase compared to the same period last year but decreased by 0.1% compared to the fourth quarter of 2022.

For the construction material costs, three items saw price increases exceeding 10% compared to the same period in 2022: sanitary ware, wood and wood products, and tiles. Sanitary ware, which accounts for 2.0% of the construction materials category, experienced the highest price increase of 13.2% compared to the same period last year, although prices remained unchanged compared to the fourth quarter of 2022. Wood and wood products, making up 16.7% of the construction materials category, saw a price increase of 13.0% compared to the same period last year and a 3.2% increase compared to the fourth quarter of 2022. Tiles also experienced a significant price increase of 10.2% compared to the same period last year and a remarkable 14.1% increase compared to the fourth quarter of 2022.

Steel and steel products account for 5.8% of the construction materials category, and have also seen continuous price increases, rising by 7.1% compared to the same period last year. However, there is a trend of slowing price increases, with a decrease of 0.4% compared to the fourth quarter of 2022. Similarly, concrete products, which account for 4.3% of the construction materials category, saw a 2.5% price increase compared to the same period last year, but prices remained unchanged compared to the fourth quarter of 2022. Both items are significant components of the standard home construction price index, and their price changes will need to be monitored continuously in the second quarter of 2023.