Demand for Thai homebuilding rises by 20pc

Demand for new build homes in Thailand increased by 20pc in the first quarter of 2012, the Thai Home Constructions Association has revealed.

The company found demand rising outside of Bangkok, with the strongest increase in the North, Northeast and South regions. The growth has been attributed to the rising prices of Thai property, which is pushing buyers towards newer, more affordable accommodation, in addition to Bangkokians looking for second homes in the provinces.

Association president Sitiporn Suwanasut told the Bangkok Post that the recovery in homebuilding was "proceeding quicker than expected", with expanding construction firms outside of the capital city best positioned to benefit.

Indeed, one survey by the Real Estate Information Center showed the Chon Buri, the developer with the highest number of projects outside of Bangkok (534), has already sold 69 per cent of its 87,500 units on the market. The rest are predicted to sell within the next six months.

But the rising activity in the sector has also led to a shortage of workers as labourers were affected by the floods last year. The outlook for the rest of the year depends on whether the floods return, but momentum is expected to get stronger in the second quarter of 2012.