Home Builder Association (HBA) has revealed that home construction orders in the first half of the year did not meet the set targets due to delays in government formation, which have negatively impacted purchasing power and led to prolonged economic stagnation. The association is urging for the swift establishment of a new government to manage the country and is preparing to propose tax relief measures for home construction at 10,000 baht per million, with a maximum of 100,000 baht, to encourage more people to build homes on their own land and address rising labor costs. Additionally, they are organizing the 19th Home Building and Materials Expo 2023 under the theme "All About Home Building" from September 20 to 24, 2023, at Impact Hall 6, Muang Thong Thani, hoping to fully revive purchasing power in Q4 of this year.

Mr. Olar Chanphu, President of the Home Builder Association (HBA), stated that the overall situation in the home construction market during the first half of 2023 faced numerous challenges that led to home construction orders falling short of expectations. Factors include political uncertainty and delays in government formation, as well as rising labor and construction material costs, causing consumers who wish to build homes on their own land to postpone their decisions indefinitely. The country's economy may slow down again after showing some recovery from the COVID-19 situation. The association is concerned not only about political uncertainty and delays in government formation but also about potential street protests that could impact consumer confidence and the economy.

To address this situation, the association is preparing to push for measures to stimulate purchasing power and restore consumer confidence in two main areas: proposing tax measures that allow consumers building homes on their own land to deduct the construction value specified in their construction contracts from their personal income tax in the following tax year at a rate of 10,000 baht per million, with a maximum of 100,000 baht. "The proposal to allow home construction costs to be tax-deductible will help accelerate consumer decision-making and stimulate the market in the quickest way possible. Additionally, the association will collaborate with commercial banks to provide home construction loans, with many banks currently ready to offer loans with high amounts and low interest rates, especially for homes priced between 1 to 3 million baht," Mr. Olar stated.

Regarding the rising labor costs, part of this is due to the election campaign policies of political parties, which, although the government has not yet been formed, have already seen labor costs increase. Additionally, construction material costs have also risen, both of which are significant factors affecting the increasing prices of homes.

Furthermore, the association is preparing to stimulate the market in the final quarter of this year with the "Home Building and Materials Expo 2023" under the theme "All About Home Building," continuing for the 19th year. This major event will gather the most leading home construction companies, offering over 1,000 house designs priced from 2 to 100 million baht and special promotions for attendees, including consumers looking to build homes and the general public.

The activities within this event will focus on promotions that best meet consumer needs, such as energy-efficient home innovations, offers related to solar roof installations, electric vehicle (EV) charger installations, and special rate home loans for homes valued between 3 to 8 million baht, among others. The event will take place from September 20 to 24, 2023, at Impact Hall 6, Muang Thong Thani.

“Although customers are concerned about the current political situation, if we present promotions that meet their needs, we believe it will encourage consumers planning to build homes to make decisions more quickly. Typically, once a home construction order is placed, it takes another 4 to 6 months before construction can begin, during which time the situation and market are likely to improve,” Mr. Olar said.