Prices for raw materials, steel, oil, and labor have increased since the beginning of 2021. This has had such an impact on construction costs that real estate companies are preparing to increase prices by 3-5% by 2022 as they have seen signs of economic recovery and supply demand in the market has begun to return to equilibrium.
Apha Attabunwong, executive chairman of Richy Place 2002 Public Company Limited, said the work has been ongoing from 2020 to 2021. Some of the old material stocks have already been completely used up. When the old stocks are used up, new stocks, new costs, have to increase the price. Therefore, the cost increase will affect the selling price, which must be increased by 3% to 5%.
To get a handle on rising costs during this time, higher costs such as management costs need to be reduced.
Including labor costs, because since the Covid-19 virus outbreak, 90% of foreign workers did not return to the country after the pandemic subsided. This leads to a labor shortage so that the ongoing construction work can only be carried out with an insufficient number of workers. As a result, the progress of work on each project is delayed by 10-20% compared to planning, and most importantly, labor costs become more expensive!