12 May 2023 Real Estate and Construction Total value of construction investment in 2023 may shrink amid political uncertainty (Current Issue No.3409) คะแนนเฉลี่ย คะแนนเฉลี่ย 5 stars 4 stars 3 stars 2 stars 1 star KResearch projects that total value of construction investment (of the public and private sectors) in 2023 may reach approximately THB 1.34 trillion, shrinking by 2.0-1.0 percent YoY. The contraction is mainly due to public construction investment that may decrease amid political uncertainty, especially regarding the official results of the general election, formation of a new government, and changes in key positions in the Thai politics. This would affect the fiscal 2024 budget and may result in deferral or suspension of disbursement of public investment expenditure this year. In addition, public construction projects may be reconsidered in case of new budget allocations. Private investment in 2023 is expected to remain stable, driven partly by commercial property construction, particularly in mixed-use projects as well as hotel and retail development projects to support the tourism recovery. Meanwhile, residential projects must maintain a cautious stance amid market concerns over purchasing power and rising interest rates. As for ongoing infrastructure projects under the public-private partnership (PPP) scheme, some projects are likely to remain on track while others may see delays or interruptions. Plus, new projects awaiting the government’s consideration may not be able to start construction within this year. KResearch holds the view that the likely contraction in total construction value for 2023 would affect operating results of construction companies to varied extents. It depends on several factors, especially types and progress of existing construction projects. An additional challenge is effective cost management, including persistently high prices of construction materials and potential minimum wage increases. The cost burden could affect profitability and debt servicing ability of businesses going forward. View full article Login / Register Or Enter the code from the poll Annotation This research paper is published for general public. It is made up of various sources. Trustworthy, but the company can not authenticate. reliability The information may be changed at any time without prior notice. Data users need to be careful about the use of information. The Company will not be liable to any user or person for any damages arising from such use. The information in this report does not constitute an offer. Or advice on business decisions Anyhow. Real Estate and Construction ConstructionPublic construction Related Analysis View all 28 Nov 2017 Real Estate and Construction Developers Need Caution toward New BKK Homes, 100,000-108,000 Units Expected to Enter the Market in 2018 (Current Issue No. 2883) As Thai economic recovery momentum is expected to continue in 2018, boosting property developers’ confidence toward the offering of new r... Read more 0 KB 0 KB 21 Jul 2017 Real Estate and Construction Property, 2H17: Developers Adopt Wait-and-See Attitude (Current Issue No. 2856 Full Ed.) The residential property market was sluggish in 1H17 and that disappointing performance should continue into 2H17, given that consumer purchasing po... Read more 0 KB 0 KB 11 Apr 2017 Real Estate and Construction Polls: Demand for Residences in Bangkok; Purchasing Power Limited (Current Issue No. 2839 Full Ed.) KResearch has conducted a survey on the buying behavior of Bangkok residents relative to a determination on residential property demand one to two y... Read more 0 KB 0 KB 13 Jan 2017 Real Estate and Construction New Homes for Sale in Greater Bangkok Up 5-7% in 2017 (Current Issue No. 2813) The anemic residential market in 2016 forced most property developers to focus on marketing unsold residential units and delay new projects. As a r... Read more 0 KB 0 KB 4 Nov 2016 Real Estate and Construction New Homes Launched in Greater Bangkok Likely Contract for 3rd Consecutive Year… Developers Focus on Low-Rise Projects in 4Q16(Current Issue No. 2789 Full Ed.) ... Read more 0 KB 0 KB 29 Jul 2016 Real Estate and Construction Housing Demand to Wane in 2H16, Affecting New Projects (Current Issue No. 2757 Full Ed.) ... Read more 0 KB 0 KB View all