House buyers are being warned that they may have to pay an additional 5-8% next month because of rising construction costs, driven by the conflict in Ukraine which has spurred an increase in global oil prices.
President of the Home Builder Association Worawut Kanchanakul said today (Tuesday) that the costs of building houses have been increasing since last year, long before the war in Ukraine, due to the cost of steel reinforcement rods, which went up by over 50% last year.
Despite the rising construction costs, compounded by the COVID-19 pandemic, the housing market in the past year remained stable, as the economy gradually picked up.
That was until the war in Ukraine began in February, which has led to a surge in global oil prices.
Moreover, he said that the construction industry has been facing an acute shortage of labour, as he pleaded with the government to open the borders to allow more migrant workers from neighbouring countries to work here legally.
For house buyers, he urged them to decide now, instead of delaying the decision until the prices increase.
