Homebuilders set to raise construction fees 5-8%

“Homebuilders are shouldering the rising cost of raw materials, especially steel rods, which are now over 50 per cent more expensive than last year,” said HBA president Worawut Kanjanakul.

“The other factors spurring the adjustment include rising labour costs, inflation and the interest rate, which will affect buyers’ decisions.”

Worawut said the association was following the situation closely, especially the government’s policy to raise the minimum wage to 492 baht per day.

“Currently some of the workers are paid more than that – 500-700 baht per day – but most of them are highly skilled labourers,” he pointed out. “Meanwhile, low-skilled workers are paid 331 baht per day on average. Should this go up following the government’s policy, the labour cost of homebuilding will skyrocket, as highly skilled labourers will also need to be given increased wages,” he said.

“Furthermore, some businesses have already reported labour shortages as foreign countries are now hiring Thai workers to substitute local workers after easing up restrictions on foreign arrivals,” Worawut added.

The HBA has organised its Home Building and Materials Focus 2022 event from March 30 to April 3 at Impact Muang Thong Thani to showcase innovations in homebuilding and attract potential customers.

The association expects to see at least 2.1 billion baht worth of contracts being signed at the fair.

The homebuilding industry in Bangkok and surrounding provinces has meanwhile set a target of 11.5 billion baht for the 2022.