Homebuilding demand is expected to increase by 10% to 15-16 billion baht this year, driven by restored consumer confidence and declining construction material prices.
Visitors examine a mock-up house at the Thailand Home Builder & Material Fair, which runs through Sunday at Impact Muang Thong Thani. TAWATCHAI KHEMGUMNERD
Sitiporn Suwannasut, president of the Thai Home Builders Association (THBA), said the country's economic situation was more stable and better than last year, when the market was clouded by political turmoil.
But despite the unfavourable political and economic conditions in 2014, the homebuilding market still managed a value of 13-14 billion baht, up from 12.9 billion in 2013, he said.
Mr Sitiporn said another positive effect for 2015 was falling energy prices, which had in turn cut prices of construction materials by 10%.
"I believe consumers feel more confident about buying, and with more affordable construction materials we expect people will decide more quickly about constructing new houses and other buildings," he said.
But Mr Sitiporn said homebuilding costs were unlikely to change much this year, as most wholesalers and retailers were expected to opt for launching promotional and sales campaigns instead of actually cutting the prices of their construction materials.
Homes priced from 2-5 million baht, a segment focused on middle-income customers, account for 40% of the homebuilding market.
Demand from high-income buyers for houses priced more than 5 million baht makes up 30% of the market and is expected to remain stable.
Greater Bangkok accounts for 80% of homebuilding in Thailand.
"That indicates there remains much room for growth upcountry, and that will be our focus this year," he said.
Mr Sitiporn, who is also chief executive of homebuilder PD House Corporation, said his company planned five more branches this year for a total of 48, mainly in the Northeast and East.
Upcountry buyers now have strong purchasing power, on a par with buyers in Bangkok, and are looking for houses priced from 3-4 million baht.
PD House expects revenue growth of 10-20% from last year's 1.7 billion baht, which represented an increase of 21% from 2013.
In a related development, the THBA is hosting the Thailand Home Builder & Material Fair at Impact Muang Thong Thani until Sunday. Some 500 million baht worth of bookings from 50,000 visitors is expected at the five-day event.