Thailand real estate prices expected to rise in 2022

Since the first quarter of 2020, the house value index has been declining whereas new house prices have elevated. Several pandemic-related factors are accountable, together with a rise in the costs of gasoline and construction supplies, along with greater inflation and a labour shortage. Pattern compounding of those pressures imply actual estate costs in Thailand are able to rise in 2022.
Following the resumption of world economic activity, the prices of several key building materials like steel and cement increased, while gas prices increased by 50%, the Bangkok Post reported. In 2021, the price index for construction supplies elevated by 8% from 2020 – the best leap since 2008.
Due to the numerous worth will increase, developers will find it difficult to finish their initiatives and deliver pre-bought items to their buyer on the contractual costs, Landy Home’s Director of Construction Phanid Maneerattanaporn informed the Bangkok Post.
“It might be a difficult year for homebuilders because the demand aspect is strong however the supply facet or construction costs is worrying. We must handle prices the best to complete the units at the value we agreed with customers earlier.”

But the price of development materials aren’t the one part of the supply chain which have taken a hit through the extended pandemic.
“Many exported supplies are obstructed by delivery delays or supply shortages, resulting in a domino effect.”

The chairman of the property growth company Supalai has echoed comparable considerations.
“The prices of housing improvement, excluding land costs, will likely improve by 3-4% this yr. … When mixed with higher labour wages and gas costs, housing costs might be 2% higher.”

In December final year the Bureau of Trade and Economic Indices reported that the costs of iron and steel merchandise had elevated by 28.7%, followed by concrete (5.6%), aluminium, asphalt, and sand (4.2%), electrical energy and water supply tools (3.8%), and cement (3%)..

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