Thai home-building market shrinks by 11%, Home Builder Association adapts with proactive strategies

In the face of Thailand’s economic pressures, including slow consumer spending, high household debt, and tight credit conditions, the Home Builder Association (HBA) has announced a more proactive approach to navigate challenges in the home-building sector. The move follows a sluggish market, with Q1 2026 sales declining by 11% compared to the previous year.

According to Anantakorn Amornwatee, President of the Home Builder Association, the market for self-built homes in Thailand is expected to reach THB 190.134 billion in 2026, down from THB 213.36 billion in 2025. This downturn reflects the impact of a continuing sluggish economy.

However, Anantakorn pointed to a significant shift in the market structure, noting that regional markets outside Bangkok remain strong, accounting for 77% of the market share. In contrast, Bangkok and its surrounding areas saw a 16% decrease, with total sales dropping to around THB 43.731 billion.

2026 strategy: Proactive and forward-thinking

In response, the Home Builder Association has adopted a more aggressive strategy under the vision of B-Q-O (Brand, Quality, Organisation). The focus will be on digital engagement, particularly through website upgrades and short-form video content to engage younger consumers. The association aims to differentiate its members from general contractors in terms of standards, credibility, and consumer safety.

The association also plans to elevate workforce quality across the entire business chain, from executives setting long-term direction, to sales teams evolving into home advisors, and construction teams ensuring engineering standards are met. Back-office teams will focus on improving cost control to mitigate risks of loss.

In addition to the B-Q-O strategy, the HBA has launched its first official regional committees in the Northeast and South, where more than 10 member companies exist, to enhance operational efficiency and extend the reach of quality home-building services across the country.

Future-focused measures to boost home-building

Anantakorn also shared that following the formation of a new government after the 2026 election, the Home Builder Association plans to propose three key measures aimed at stimulating the home-building market:

1. Co-payment scheme for the housing sector, where the government would assist with certain costs like construction materials or initial interest payments.
2. An extension of the tax deduction scheme for another two years, extending the deadline from 31 December 2025 to 31 December 2027.
3. An increase in the tax deduction limit for building homes from THB 100,000 to THB 500,000 to better reflect current construction costs.

These measures are designed to encourage house-building decisions, accelerate economic circulation, and instil confidence in consumers, particularly as construction costs and wages are expected to rise in the near future.

Despite the challenges, Anantakorn remains confident about the long-term future of the Thai home-building market. He estimates that the total market value for 2026 will be similar to 2025, around THB 190 billion. He also advised anyone considering building a home to make a decision soon, as it is still an optimal time for cost-effective building.

The Home Builder Association remains committed to raising standards within the home-building industry, aiming to be a trusted partner for consumers even as the economy works towards recovery. As the market adjusts, the association’s proactive approach aims to set the stage for a stable, thriving future in home construction.