Thailand's recent earthquake, one of the most powerful ever recorded in the country, has sparked a growing concern among urban residents living in high-rise buildings. The tremor raised alarm over the safety of buildings without proper seismic design, causing a noticeable shift in consumer sentiment, particularly among middle to upper-income groups. As safety becomes a top priority, many are considering a move away from high-rise living in favour of low-rise housing options.
If this shift in preferences does occur, it could significantly impact the home improvement sector. Increased demand for detached homes could lead to changes in the construction market, with smaller-scale builders, who are the main customers for businesses like GLOBAL, DOHOME, Thai Watsadu, and MegaHome, seeing a rise in sales of building materials.
In Bangkok, where land is limited, and new low-rise homes are often financially out of reach for many residents, an emerging trend is gaining traction. More people are buying old shophouses or second-hand homes, which they can renovate. This trend is expected to fuel demand for home improvement products, boosting companies like HMPRO.
While high-rise buildings are unlikely to lose all appeal, the market is expected to become increasingly divided. Projects developed by top-tier firms with solid engineering reputations are expected to retain their desirability. However, developments perceived as structurally vulnerable or those still under construction may struggle with diminished buyer confidence.
This shift in consumer behaviour highlights the evolving dynamics of Thailand's real estate market, and investors and industry stakeholders would be wise to monitor these trends as they unfold closely.
