Construction Material Price Hike Warning Q3, Price Wars Threaten Business Closures

Khaosod•Economy•8d ago

Reader Briefing

The Thai home building industry faces a looming price hike for construction materials in Q3 and potential business closures due to escalating costs and aggressive price wars.

•Construction material prices in Thailand are predicted to rise in Q3 2026 due to global shortages and increased production costs.
•The Thai home building association warns that price wars among construction businesses risk severe financial losses and business closures.
•Consumers are advised to follow '3 Standards' when selecting building contractors to avoid being misled and to ensure fair pricing and quality.
•The market is expected to contract in Q2-Q3 2026 due to reduced purchasing power, while new competitors are increasing, intensifying competition.

Overview

•The Thai Home Builders Association (THBA) is analyzing the current situation of the home building industry amidst geopolitical crises.
•The prolonged conflict in the Persian Gulf region is a significant negative factor impacting the global and Thai economies, especially energy and transportation costs.
•In Q3/2026, construction material prices in Thailand are anticipated to increase again.
•The association warns businesses about the 'price war' trap, which can lead to 'losing twice' due to increased costs and material prices.
•Businesses that do not adjust their selling prices to match the rising true costs will face double cost increases.
•Consumers are cautioned against contractors requesting advance payments beyond contractually agreed terms, often citing 'locking in prices'.
•The THBA recommends consumers consider three main standards when selecting a home builder: standard house designs, standard construction costs, and standard quality of materials/equipment.
•The THBA recommends businesses focus on establishing work standards and systematic cost management rather than sales volume to navigate the crisis.

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Key Quotes

Sittiporn Suwansut

"This will become an immense pressure on the home building business sector, unavoidably."

สิ่งนี้จะกลายเป็นแรงกดดันมหาศาลต่อภาคธุรกิจรับสร้างบ้านอย่างหลีกเลี่ยงไม่ได้

Sittiporn Suwansut

"Lose twice."

ขาดทุน 2 เด้ง

S. Thaiรับสร้างบ้าน (THBA)

"Consumers should not believe claims that construction can be done within budget and quality of materials agreed upon later."

ผู้บริโภคไม่ควรหลงเชื่อคำกล่าวอ้างที่ว่าสร้างได้ตามงบประมาณที่มี แล้วค่อยไปตกลงคุณภาพวัสดุภายหลัง

Key Entities

Organization

Thai Home Builders Association (THBA)(ส.ไทยรับสร้างบ้าน)

An association that analyzes the situation of the home building industry.

Person

Sittiporn Suwansut(นายสิทธิพร สุวรรณสุต)

Honorary Director of the Thai Home Builders Association (THBA).