Construction Price Index

- The Construction Price Index is prepared by the Ministry of Commerce as an indicator of changes in the prices of construction materials, as well as indicating whether material-related construction costs are increasing or decreasing. For the purpose of computing this index, the Ministry of Commerce divides construction materials into nine categories: lumber/wood products, cement products, concrete products, iron/iron products, tiles, coating materials, sanitary ware, plus electrical and plumbing supplies.
- The Construction Price Index rose 4.6 percent in 1H12 YoY (year-on-year), due to rising demand from a number of large-scale government projects, including the MRT Purple Line (Bang Yai-Bang Sue), MRT Blue Line (Hua Lamphong-Bang Kae and Bang Sue-Tha Phra) and the BTS Green Line extension (Wong Wian Yai-Bang Wa), plus road construction, expansion of public utility systems and flood prevention projects in Bangkok Metropolitan Area (BMA) and in upcountry provinces.
- Construction material prices are expected to remain high this year in line with rising demand, as well as on higher manufacturing and freight costs. Requests to raise prices on some items are being prepared by producers to submit to the Department of Internal Trade of the Ministry of Commerce. KResearch projects that the average price increase will be around 4.0-5.0 percent in 2012, versus 6.3 percent in 2011.
- With advanced construction technologies amid higher labor costs, more prefabricated materials are being used in the construction of large infrastructure facilities, high-rise buildings and residential units, e.g., the use of precast concrete floor systems and walls to finish construction more rapidly.