Higher-than-expected growth in the Home building market drives its value to hit 11 billion Baht

Home building market is poised to grow further in 2009 after its combined market value exceeded its target of 11 billion Baht. With improving economy, a research finding that 50% of the targets plan to build new homes in 2010 as well as the fact that home building prices are revised up from 1-2 million Baht to 2-3 million Baht range, the market value in 2010 is now projected at 12 billion Baht.


Mr. Panthep Tharnchitikul, President of the Home Building Association, reveals today that the home building market value in 2009 is expected to grow 12% YoY from 9.8 billion Baht in 2008 to 11 billion Baht in 2009, which is 5% higher than its target of 10.5 billion Baht. Looking backward, the 1H09 market was adversely hit by local economic downturn and political stalemate, which resulted in lower sales figure for many companies, while the market well recovered in the 2H09, especially, when the Home Building Association staged the Home Builder 2009 to help stimulate sales. With total registered on-site sales of 2.4 billion Baht, the figure was a record-high in its history and significantly helped contribute to the higher-than-expected growth of the home building market in 2009.

In 2010, it is expected that the home building market would grow 9-10% YoY to 12 billion Baht mainly due to several improving economic figures. While the mode prices found at the Home Builder 2009 were up from 1-2 million Baht in 2007-2008 to 2-3 million Baht range in 2009, the average on-site price at the Home Builder 2009 was up from 4.3 and 4.2 million Baht in 2007 and 2008 respectively to 4.7 million Baht in 2009.

“Home building market outlook has significantly improved since mid of last year partially due to improving economy, which resulted in rising consumer confidence. At the same time, many home building companies have also launched more marketing activities in the 2H09. This coupled with the staging of the Association’s Home Builder 2009 significantly help reverse the decreasing purchasing power in the 1H09 back on track. Furthermore, according to a research conducted at the Home Builder 2009, it is found that about 50% of the targets have plans to build new home in 2010, which makes us believe that the home building market in 2010 would continue to grow as we expected.” Mr. Panthep said.

Mr. Panthep further added that though the Association’s guidelines and policy in 2010 would have to wait for the appointment of a new President and an executive committee, which were expected in January 2010 after the election on November 27, 2009, he believed that the Association would maintain its main policy and commitment to upgrading the standard of the Home Building business so that it is widely accepted by the consumer as well as the general public as a whole.