From the land of a thousand smiles, things are looking up in the residential real estate market in Thailand. In a recent Property Report in Feb 2022, experts have weighed in to say that the Thai home price market is slated for an increase in 2022. Thailand’s property sector undoubtedly suffered a decline during the first quarter of 2020, but new home costs are on the mend to go higher due to inflation, rising fuel costs, labour shortage and a spike in construction material prices.
“In 2022, we expect to see property prices go up by three to five per cent,” Apa Ataboonwongse, chief executive officer at Richy Place told The Nation Thailand. Labour costs have spiked because many migrant workers have returned to their countries, thereby, causing many delays where up to 20 per cent 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.
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Steel as a material has also witnessed an exponential spike in price as it has risen 30 per cent. Other material cost increases include concrete, aluminium, 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 slowly opening up its borders to travellers again, the rise in tourism may help give the economy much needed boost.