Bangkok: The Home Builders Association has reported a significant 20% decline in revenue for the home building sector in 2024, attributing the downturn to the lack of economic recovery.
According to Thai News Agency, the association highlighted Bangkok as leading the nation with the highest number of homes built, valued at 51 billion baht. Despite these figures, the association urged the government to stimulate consumption, stabilize the political environment, and amend labor laws concerning foreign workers to support the industry.
Mr. Anantakorn Amornwatee, the President of the Home Builders Association, disclosed detailed statistics for house construction during 2024. Bangkok and its vicinity accounted for 24.37% of the construction, valued at 51,421 million baht, while the provinces made up 75.63%, valued at 159,579 million baht. Overall, the market was valued at approximately 211,000 million baht, marking a 20% decrease from the previous year. The decline was primarily due to a reduction in demand for self-built homes among Thais, with a more pronounced decrease observed in Bangkok compared to the provinces.
The market value within the association's members remains stable at around 10 billion baht, predominantly in Bangkok and its vicinity. However, the absence of clear supporting factors such as favorable interest rates and consumers' confidence in the economy, coupled with increasing household debt, continues to pose challenges.
In addressing the National Economic and Social Development Board's (NESDB) projections for 2025, the association suggested that government measures to promote investment and stimulate consumption are necessary, particularly in encouraging private investment. They noted that although the home building business may not decline in line with the overall economy, current economic conditions have caused potential homeowners to delay construction plans. The association anticipates that the growth in 2025 will mirror that of 2024, with a trend towards integrating modernity and nature in home designs to create aesthetically pleasing and sustainable living spaces.
The Home Builders Association also proposed legislative changes to ease labor law restrictions, facilitating the legal entry and employment of foreign workers in the sector. Mr. Ananakorn further remarked that the Baan Pua Thai project, which targets first-time homeowners with low incomes, does not impact the association's market, which caters to a different clientele with home values ranging from 2-3 million baht to 100 million baht.
Furthermore, adjustments to the Board of Investment (BOI) housing conditions aimed at encouraging private companies to co-own houses for Thais are not expected to affect the association's members, as their clientele typically involves company-owned homes on private land. Concerning foreign investments, particularly from Chinese groups in integrated businesses, Mr. Anantakorn asserted that such activities are unlikely to impact the association's members but may have broader implications for the real estate sector.