Housing prices are projected to rise by 5-10% this year as the standard home construction price index continued an upward trend, with a year-on-year increase of 5.6% in the fourth quarter of 2022 amid a labour shortage.
Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said the construction price index of standard homes in the fourth quarter of 2022 was 131.9, up 5.6% from the same period of 2021 and down 0.2% from the third quarter of 2022.
“The year-on-year rise was derived from an increase in prices of the construction design and system job category,” he said.
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“The largest increase was in structural engineering jobs which accounted for 28.6% with an increase of 6.1%.”
In the construction materials category, the prices of six items rose.
The largest increase was sanitaryware at 13.2%, resulting from high oil prices which had an impact on manufacturing and transportation costs.
It was followed by wood and wooden products (9.5%), steel and steel products (7.5%), electricity and water supply equipment (3.4%) and concrete products (2.5%). Other construction materials had a price increase of 3.9%.
Only tiles had a drop of 3.4% because tile producers reduced prices to maintain the market, said Mr Vichai.
“Soaring prices of construction materials will be pushed to home prices this year which will increase eventually,” he added.
When examining each quarter, the fourth quarter last year was the first time in eight quarters since the third quarter of 2020 when the construction price index of standard homes had a quarterly drop.
Source: Bangkok Post
