There seems to be a bit of a misconception that Thailand’s low building prices are the result of inexpensive labour and materials. However, times do change; over the past 20 years, the cost of living and the minimum wage have increased significantly in Thailand, and the price of raw materials has also increased in step with the times.
The price of imported raw materials from China is a significant issue that will influence building expenses in Thailand.
In the upcoming year, almost all raw material costs are expected to increase by at least 15%. Particularly metal resources like copper, iron, and zinc are expected to increase by over 30% this year (copper is predicted to increase by 38%). Smaller residential homes might not be significantly impacted, but bigger condo, hotel, and commercial developments will undoubtedly experience a significant increase in construction costs, which will undoubtedly be passed on to consumers.
The daily minimum wage in Thailand for basic labor, such as industrial work and construction, increased dramatically few years ago, from 150 THB to 300 THB. However, the demand for skilled employees has increased to the point where day rates for tilers, electricians, plumbers, and other professionals have tripled or more over the past few years. Many of these professionals now earn between 20 and 30,000 THB per month on full-time salaries, and even more on day rates.
Of course, compared to the west, you can still build a simple, inexpensive home, but with increased customer expectations and a demand for better-quality finishes, building something to a “western standard” these days is expensive.
Additionally, some of this is regionally specific. Anyone in Isaan who has constructed a home for the Thai wife’s parents is aware that a modest three-bedroom home could most likely be constructed for less than one million THB. However, labour rules and pay won’t be carefully followed, and the construction materials utilized will be as simple as they can be (extremely basic electrical and plumbing, thin walls, bare-bones columns and footings, etc.).
We have been in and out of the construction business in this area for a while, so when people ask me in general about building expenses, I typically use the following figures.
You should budget between 15 and 20,000 THB per square meter for something very unique and high-end for a full refurbishment of an existing property. Assume a cost per square meter of around 15,000 THB for a very basic house build or up to 25,000 THB for a very nice finish with all extras (pool, nice kitchen, quality fixtures, etc.).
We always advise that there are three areas where expenses tend to spiral out of control are kitchens and appliances, bathrooms, and built-in furniture.
The cost of a kitchen can vary greatly and is typically one of the largest expenses of any construction or renovation. A 4-meter kitchen with an island might cost as little as 200,000 THB or as much as over 1,000,000 THB rather rapidly. The same is true for bathrooms; the cost of sinks, faucets, showers, etc. varies widely and can significantly affect the cost of construction for a home with four bathrooms. Once more, custom wardrobes for built-ins can range from 10,000 THB per linear meter to well over 40,000 THB per linear meter if you have wardrobes and cabinets in every bedroom. When you multiply it by four bedrooms, you can understand how quickly costs may rise.
Every year, an official Thai appraisal association updates Thailand’s construction costs. To be fair to them, they are quite specific and break down costs for various types of homes, factories, and businesses, as well as providing their appraised estimates for various levels of build quality. I thought I’d just offer a few examples from the Thai Appraisal Association (costs in THB per sqm), even though they provide examples for dozens of different project types in Thailand:
Between 6,700 and 9,100 THB per square meter, a two- or three-story concrete shop-house; between 10,100 and 13,100 THB per square meter; between 11,300 and 14,800 THB per square meter; between 10,300 and 14,800 THB per square meter; between 12,700 and 20,900 THB per square meter; between 18,900 and 33,000 THB per square meter; between 20,900 and 35,000 THB per square meter; between 6,700 and 9,100 THB per
Again, the level of finish for the items listed above varies greatly depending on who is considering it to be of a “high level of finish” and who considers it to be fairly simple.
For a full quote and to meet us to tell us all about what you are currently dreaming for your home or investment project in Thailand, we can advise you on what is available land-wise, where is good to build, what is good to build, the local infrastructure around your Thai home, and generally what it is like living in the area where you want to live in Thailand and of course all the legalities of owning your home, selling or transferring to your family of you wish.
