Weekly Thai Real Estate News Roundup, Week 23, 2022
EIC predicts a significant increase in construction costs due to rising energy prices
The construction industry's value in 2022 will continue to expand at 4% YOY, reaching 1.42 trillion baht. However, construction operators face challenges from rising construction costs and labor shortages. The number of foreign workers in the construction sector has declined since the COVID-19 epidemic. The volume of domestic cement consumption in 2022 is likely to grow 2% YOY to 35.1 million tonnes, driven by expansion from government construction. The price of long and flat-shaped steel in 2022 is likely to rise by around 15%.
As a result of these developments, the EIC predicts that construction operators may make advance contracts. In addition, the building materials industry will face more challenges on environmental issues, with strategies to reduce CO2 emissions becoming imperative.
For the full report in Thai: https://www.scbeic.com/th/detail/file/product/8311/gahwy5osla/Industry-insight_Construction-and-Building-Materials-Industry-Outlook-2022_20220606.pdf
Tags: SCB EIC
SC Asset launches utility token with Token X
Token X has developed a ready-to-use utility token under the name "SC Morning Coin" on the "RueJai App" or "Roojai App". The utility token on the RueJai App was developed under the concept of "Live – Work – Play" to create a new experience with access to special privileges and discounts on goods and services. The first phase of the rollout will gradually allow customers, SC Asset family members, and other stakeholders. The collaboration combines Token X's strong blockchain technology capabilities and expertise with the vision of "SC Asset".
Tags: Ms. Chittinan Chatsiharat, Mr. Nuttaphong Kunakornwong, SC Asset, Token X
Source: https://www.scasset.com/th/news/sc-asset-joins-forces-with-token-x/
Government to start phase 2 of “Million House Project”
The Cabinet has approved for GH Bank to go ahead with the adjustment of the purchase-sale price, construction cost, and loan amount for the Million House Project Phase 2. The maximum collateral per person can now be increased to 1.5 million baht. The Bank of Agriculture and Agricultural Cooperatives has created the Million Houses Project Phase 2. Interested people can apply for a fixed interest rate loan at 1.99% per annum. If purchasing homes from real estate operators listed on the stock exchange, their loan-to-value ratio can be adjusted.
The bank is in the process of determining the criteria for customers who will be able to receive a loan amount of up to 110% of the collateral value. People affected by COVID-19 income will continue to receive assistance until June 30, 2022. The measures will extend the period of continuous assistance from 1 July 2022 to 31 December 2022. Customers can choose to split installment payments and reduce the interest rate on loans by 0.25-0.50% per year.
Source: https://www.ghbank.co.th/news/detail/public-relations/press-07-06-2022
Tags: Mr. Chatchai Sirilai Managing, Government Housing Bank
'Phra Khanong-Bangna' city plan based on Japanese Redevelopment model gets go ahead
The 'Phra Khanong-Bangna' development area will benefit from Japanese-style land readjustment, becoming a major jobs driver. Bangkok Governor Chatchart Sitthiphan said, "Currently, it's not easy to see an overview of a well-balanced district or neighborhood. Japan's land reform concept is interesting to use for city planning." The Phra Khanong-Bangna area is one of the key development areas of Bangkok with the completion of the redevelopment to be expected in 2040. The National Innovation Agency has placed it as a model area for the digital innovation district. The project will be considered a prototype that will be extended to other districts in the future.
