The Home Builder Association (HBA) reports that the overall home construction market in Q2 is lively, benefiting from the tax relief measure of '10,000 Baht per million' for home construction. Insights reveal that homes priced between 2.5 to 5 million Baht are the most popular among consumers.

Mr. Olar Chanphu, President of the Home Builder Association (HBA), stated that the overall home construction market in Q2 of this year shows a positive trend compared to Q1, where the market was stable due to rising interest rates, high household debt, and strict lending policies from financial institutions, along with the absence of measures to stimulate the real estate sector.

The association anticipates that the overall home construction market in Q2 will expand positively, driven by consumer confidence in the economic situation and the support from the “10,000 Baht per million tax relief” measure, which allows individuals building new homes to receive personal income tax deductions. The contract signing and construction period is set from April 9, 2024, to December 31, 2025, with consumers eligible for tax deductions in the following tax year after the completion of their homes.

Additionally, the overall economic situation is being stimulated, along with investment promotion in various projects, leading to a significant improvement in the market direction. Consumer confidence is returning after previously delaying home construction decisions indefinitely. There is also a trend of rising construction material prices, which may directly increase construction costs by about 5-7%, making it easier and quicker for consumers who plan to build homes to make decisions.

Amid the expansion of the home construction market in Q2, the association has outlined strategies to reinforce confidence and stimulate demand for home building through its activities. They are preparing to host the “Home Construction and Materials Expo 2024” from September 18-22, 2024, at Impact Hall 6, Muang Thong Thani, with all member home construction companies participating to showcase new home designs. The event will cover an area of over 5,000 square meters and marks the 20th anniversary of the association.

In the first three months of 2024 (January-March), the association recorded a total of 1,376 home construction orders nationwide, valued at approximately 2.177 billion Baht. Homes priced at 20 million Baht and above contributed the most value to the home construction market, while homes priced between 2.5 to 5 million Baht remain the most popular segment, with a growing trend expected in Q2 due to the government’s tax relief measures.

“The demand for home construction is expanding across all price levels in both Bangkok and its suburbs, as well as in provincial markets, leading us to believe that the overall home construction market in Q2 will become vibrant again and grow beyond expectations,” Mr. Olar concluded.