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Published on November 8, 2007

"The oil price would be the only factor to obstruct the growth of this business next year, if it climbs to US$100 [Bt3,400] per barrel from around $90 at present," association president Sakda Kowisuth said yesterday.

However, Sakda said if the oil price fell to $80 and the new government were formed early next year, he expected growth in home construction of 10-15 per cent next year.

"The industry has a chance to perform well after the election," he said.

"The new government will be in a honeymoon period. The government should inject money into the economy to stimulate investment in the private sector. Home construction should have a bright outlook after slowing down for two years."

Sakda said builders might adjust prices of residences next year due to rising costs of oil and raw materials. However, he could not forecast the percentage growth in costs.

He estimated the investment value of home construction at Bt8 billion this year and predicted it would reach Bt8.5 billion next year.

Nont Sahaya, president of the Royal Group, said that if contractors wanted to survive fierce competition, they should negotiate with employers for more details about projects and have good cash flow.

"Small contractors usually have a problem with cash flow. All raw materials have risen in price, especially oil, so they should be careful when they plan to spend money on each project," he added.

Nalin Viboonchart

 The Nation