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Thai Housing Market – Provincial Boom to Shore up Homebuilders’ Market this Year

By on Jan 03, 2014 in Property News

Amid the intense competition,Bangkok-based homebuilders need to adjust themselves.

Reputable players who can effectively manage their costs will survive while small builders need to limit the orders they accept and tap niche segments to stay afloat, suggested Mr Sithiporn.

THCA estimates the number of selfbuilt homes nationwide will total around 80,000 units in 2014.

Of the total, homebuilders will have a 6-7% share or around 4,800-5,000 units worth 14 billion baht, up 8-10% from 2013.

By location, some 70% of all units will be in the provinces and the rest in Greater Bangkok.

At the same time, the top five homebuilders and construction materials producer-turned-homebuilders will help expand the market and command the largest share.

The association will hold the Thailand Homebuilder Fair 2014 on Feb 5-9,2014 at Impact Muang Thong Thani and the Home Builder Association will hold the Home Focus event in March.

Mr Sithiporn said purchasing power in the homebuilding market may slow down due to the political situation and sluggish economy.

However, the builders catering to provincial markets will help boost the market value in 2014.

Despite higher costs, they will apply the precast construction method due to the economy of scale, speed and quality control it offers.

In 2013, the homebuilding market grew by 12% to 13 billion baht from 2012, driven by the three main players including THCA members, construction materials producers who shifted to homebuilding and non-member builders.

These three groups shifted to the provinces and posted average growth of between 10% and 30%, according to Mr Sithiporn.

Meanwhile, members of the Home Builder Association focusing on Greater Bangkok saw a slow growth rate.

“There are a large number of general homebuilders who are not members of the associations. They were local investors in the provinces or new players entering the market over the past few years,” said Mr Sithiporn.

These homebuilders had offices in major provinces such as Chiang Mai,Nakhon Sawan, Udon Thani, Ubon Ratchathani, Nakhon Ratchasima, Saraburi, Chon Buri, Rayong, Prachuap Khiri Khan (Hua Hin), Surat Thani and Songkhla (Hat Yai).

In the first three quarters of 2013, the purchasing power and sales of the homebuilding market was good nationwide due to marketing campaigns.

Unlike in Greater Bangkok, marketing activities in the North, Northeast, Central and South were very active.

For the full article, please visit http://bit.ly/JxDj2q

Source | Bangkok Post 1 January 2014

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