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 February 2022, experts estimated that the Thai house price market is likely to increase in 2022. Thailand’s real estate sector undoubtedly suffered a decline during the first quarter of 2020, but housing new homes are on the rise. is expected to rise due to inflation, rising fuel prices, labor shortages and soaring building material prices.
“In 2022, we expect to see real estate prices increase by 3-5%,” Apa Ataboonwongse, managing director of Richy Place, told The Nation Thailand. Labor costs have skyrocketed because many migrant workers have returned to their countries, leading to numerous delays affecting up to 20% of projects. Even with reduced management costs over the past year, it would be difficult for developers to maintain the same prices. This rising cost has caused a domino effect on the entire global supply chain. Compounded by shipping delays and supply shortages, the construction industry for residential projects across the world is being affected.
Steel as a material has also seen an exponential price spike as it increased by 30%. Other material cost increases include concrete, aluminum, sand, and asphalt, to name a few. However, many Thai developers have wooed buyers with their effective marketing campaigns. They hung gifts such as air conditioners, water tanks, furniture and curtains, to attract low-rise homeowners. As Thailand slowly reopens its borders to travellers, the rise in tourism could help give the economy a much-needed boost.