Home Builder Situation in Q3 and trend for Q4 and 2019

Real Estate Press Releases Thursday October 11, 2018 15:20
Bangkok--11 Oct--Thai Home Builders Association
Overview of Home Builder market

Thai Home Builders Association: THBA indicated that home builder stance in Q4, 2018 (July-September) was still stabilized or growth close to the previous quarter. The stagnancy was affected by natural disaster and political situation. However, the association has predicted that home builder market situation will be better in the last 3-4 months of the year due to the economic revival and general election in 2019 signaled by NCPO. The association also evaluated the value of home builder market is around 1.4-1.5 hundred billion and about 10% of the amount will be shared by home builder business (not local contractors)> For the past 7 months, home builder business got around 70% of the expected amount.

Home Builder in Q3

Mr.Sittiporn Suwannasut, the president of Thai Home Builders Association has predicted from the beginning of the year that the total amount of home builder market will be around 14,000-15,000 million baht. From the assessment in the past 9 months it is shown that the amount shared by home builder business was a little lower than expected. Though by the end of Q3 the needs and purchasing power was improved, natural disaster from rainy season and storm caused land slide in many regions so the customers slowed down their needs for the house, especially in the first two months of Q3.

The competition among home builder entrepreneurs—small, medium and large, was bustling in the Q3, especially in Bangkok and perimeter and major cities. The competition can be divided into 4 groups. They are 1.) Construction cost less than 2 million baht 2.) 3-5 million baht 3.) 5-10 m. baht and 4) more than 10 million baht.

The first group competes mainly on price, the second on design, quality of materials used and craftsmanship, the third on value added items like home automation and interior decoration and the fourth emphasizes on one stop services which includes interior and landscape.

"Though the expansion is not as expected, it is still believed that the needs and purchasing power of the consumers will grow up in the last quarter. This is appraised from 1.) The clarity of political situation after the government declared the general election next year 2.)The expansion of national economic signaled by stock market 3.) Public investments by the government and 4.) Campaign to arouse the market in the last quarter made by entrepreneurs. These will bustle the market once again."

The Political Clarity drives Home Builder market in Q4

In the 4th quarter, the last quarter of the year, the president of the association disclosed that the political unlock from the government relieve the customers so the market tends to be positive. Furthermore, the people in the north and northeast don't have their house built during Buddhist lent, according to their belief, so in the 4th quarter they will start building houses again. The home builder market tends to grow up. There will still be some obstacles like natural disaster or political unrest.

"The association believes that the purchasing power will bustle once again especially if the government can solve the problem of lower price of agricultural products. Furthermore, the entrepreneurs should try to expand their sales amount to meet the set goal by launching campaign to arouse decision making of the customers. This is the good time for customers to take advantages from the home builder companies."

The customers should search for information from many builders before making decision. The words from the former customers are useful because they can reflect the quality of the builders.

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