Housing Prices Set To Increase

[george]

PROPERTY MARKET: Housing prices set to increase

Shortage of raw materials will make made-to-order homes more expensive

Thailand's shortage of raw construction materials means home-buyers have to be careful of prices shifting every four months, according to Surathian Chakthranont, president of local land-developer SC Asset Corp Plc.

The price of a made-to-order home will rise along with that of the raw materials used to build it, especially steel, cement and decor items like tiles and sanitary ware, he said.

"We believe the price of a made-to-order house will increase every four months," Surathian said. "That's the period it takes to order raw construction materials."

With 80 per cent of its housing built to order, SC Asset reviews home prices every four months, he said.

The price will increase by an average 5 to 10 per cent depending on the cost of raw materials.

Those who buy pre-built houses will pay less than those who buy made-to-order because they date from last year.

Land & Houses Plc president Anant Asavabhokhin said his company's pre-built homes did not increase in price because their construction costs dated from last year and will only reach the market in the first half of this year. He said the company had stocked up on raw materials for the 41 projects it was building in the first half.

Land & Houses faces no shortage of raw materials, unlike smaller firms, he said.

Lalin Property Plc president Chaiyan Chakarakul said that price of pre-built homes was not increasing at the moment but might go up in the second half by 10 to 20 per cent as the cost of raw materials rose and new city planning came into effect.

Condos will also see higher costs because 50 per cent of condominium projects use steel as the main raw material. Detached houses require only about 5 or 10 per cent by comparison, Chaiyan said.

--The Nation 2004-03-08