“Inflation, and increases in labor cost, fuel, and materials are starting to push Thailand’s residential property prices up in 2022“–Paul Ebeling
From the land of a 1,000 smiles, things are looking up in the residential real estate market in Thailand. In a recent Property Report in Feb 2022, experts weighed in to say that the Thai home price market is slated for an increase in 2022.
Thailand’s property sector suffered a decline during Q-1 of Y 2020, but new home costs are going higher due to inflation, rising fuel costs, labor shortage and a spike in construction material prices.
“In 2022, we expect to see property prices go up by three to five per cent,” chief executive officer at Richy Place told The Nation Thailand.
Labor costs have spiked because many migrant workers have returned to their countries, thereby, causing many delays where up to 20% of projects are affected. Even with management costs have reduced over the past year, it would be hard for developers to maintain the same prices. These rising costs have caused a domino effect in the entire global supply chain. Compounded by shipping delays and supply shortages, the construction industry for residential projects across the globe is affected.
Steel as a material has also witnessed an exponential spike in price as it has risen 30%. Other material cost increases include concrete, aluminum, sand, and asphalt, to name a few.
However, many Thai developers have been wooing buyers with their effective marketing campaigns. They dangled freebies such as air conditioners, water tanks, furniture, and drapes, to entice low-rise homeowners. With Thailand opening up its borders to travelers again, the rise in tourism may help give the economy much needed boost.
Have a prosperous day, Keep the Faith!