Higher inflation, a labour shortage and the rising prices of fuel and construction materials will drive new home prices higher this year after the housing price index kept declining since the first quarter of 2020.
Phanid Maneerattanaporn, director of construction and business development of homebuilder Landy Home (Thailand), said costs of housing construction this year will definitely rise.
“It will be a challenging year for homebuilders as the demand side is strong but the supply side or construction costs are worrying,” he said. “We need to manage costs the best to finish the units at the price we agreed with customers earlier.”
He said a higher consumer price index affects living costs and wages.
Prices of several construction materials like cement and steel rose, while fuel prices soared 50% after economic activities worldwide resumed.
According to the Bureau of Trade and Economic Indices, the Ministry of Commerce, the construction materials price index last year rose 8% from 2020, the highest increase since 2008 which saw a jump of 17.2% from 2007. In 2020, the index had declined by 1.8% from 2019.
Since July 2008, when the index hit a historic high at 125.7, the monthly index was the second highest in November last year at 116.
Source: Bangkok Post
