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Construction











The Thai construction market has been going through a sluggish period since 2004. New large scale private projects are developed in only limited numbers and heavy government investment in new infrastructural projects is concentrated on extension lines of the sky train and subway systems in Bangkok after the completion of Suvarnabhumi, Bangkok's new international airport.

From 2006 to 2007 every segment of the construction industry declined with the exception of the healthcare & education and hotel & restaurant sectors. The number of new construction permits declined with 2.3% in 2007 vs. 2006 although the 1st quarter of 2008 saw a slight recovery of 1.9% vs. the same period in 2007.

Although the 1st quarter of 2008 saw again some growth of Commercial construction, residential construction declined with 5.8% and industrial floor space declined with a massive 32.12% after declining already 4.3% during the total year of 2007.

The hospitality industry, one of Thailandís foremost earners of foreign reserves saw its floor space grow with 37.5% in 2007 vs. 2006 but new projects contracted again in the 1st quarter of 2008 with 36.5% vs. the same period in 2007.

Although growth of construction within the residential market segment has been contracting since 2004 it remains by far the most active sector. From 2006 to 2007 the total floor space of new residential projects declined with 10.6% and another 5.8% in the 1st quarter if 2008 vs. the same period in 2007.

2007 vs. 2006 total year: 

Segment

2006

2007

Construction permits

152,375

148,835

New

 

98.2%

Renovation

 

1.8%

Floor space total(1,000m2)

59,567

54,170

Residential (1,000m2)

42,592

38,066

Commercial (1,000m2)

7,942

6,928

Industrial and factories (1,000m2)

5,869

5,609

Education & Health (1,000m2)

428

438

Hotels & restaurants (1,000m2)

1,305

1,794

Others (1,000m2)

1,435

1,336

1st quarter 2008 vs. 1st quarter 2007:

Segment

1st quarter 2007

1st quarter 2008

Construction permits

39,089

39,848

New

98.3% 

97.7%

Renovation

1.7% 

2.3%

Floor space total(1,000m2)

14,952.1

13,709.5

Residential (1,000m2)

10,205.9

9,613.4

Commercial (1,000m2)

1,598.8

1,636.3

Industrial and factories (1,000m2)

2,016.9

1,369.1

Education & Health (1,000m2)

71.5

93.5

Hotels & restaurants (1,000m2)

654.0

415.5

Others (1,000m2)

400.5

581.1


Source statistics: National Statistics Office of Thailand