Supply shortages force delays in home-building
Developers are encountering construction delays as supplies of building materials dry up. "We understand that the government has to help people faced with flood problems. That's why we have to manage our stock of construction materials by using them in u
Some materials such as sand, cement and stone have already experienced shortages because they are used for anti-flood measures. Some materials cannot be transported from the provinces to Bangkok because of washed-out roads.
When the flood problem is solved, demand for construction materials to repair residences, such as cement, sand and sanitaryware, will increase. This will drive up construction material prices, he said.
Prasert Taedullayasatit chief business officer of Pruksa Real Estate, admitted that some materials, such as sand and soil, are now hard to find because they are used to help fight floods. Some products such as cement and sanitaryware are also trapped in paralysed distribution systems.
However, the company has enough supplies to work on its residential projects through the end of the year, while it also has enough finished inventory to meet customer demand in this final quarter of the year.
After the flooding, building-material prices will not shoot up because demand to build residences shows only slight growth and inventory in the market can cover demand, he said.
Kittipol Pramote Na Ayudhya, president of the Thai Real Estate Association, said the industry was now suffering from a labour shortage, as many workers went back home to help their flood-affected families. Stocks of building materials, such as cement and sand, are also tight because of logistics difficulties between manufacturers upcountry and project sites in Bangkok.
“Some property firms have had to suspend construction of their residential projects ” he said.
