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The construction sector, one of three industries affected by the March 28 earthquake, may benefit from post-quake repair work, but faces stricter bidding rules and a slowdown in condo development, according to a research centre. SCB Economic Intelligence Center (EIC) reported earlier this month contractors, construction material manufacturers and suppliers are likely to see a surge in demand from post-earthquake repair and restoration efforts. Most construction sites were not severely affected by the earthquake, allowing activities to continue.
As a result, both public and private construction projects in 2025 are expected to proceed without major disruption. The disaster resilience of buildings will become an important factor for both public and private project owners when selecting contractors -- especially in the aftermath of the earthquake, which highlighted the risks posed by natural disasters, noted SCB EIC. Contractors will face stricter screening during the bidding, construction and final inspection processes.
This includes evaluation of the qualifications and experience of main contractors, partners, and subcontractors involved in the project, said the think tank. Project owners will demand stricter construction procedures, use of materials that comply with established standards, on-time delivery, and quality assurance during final inspections before accepting completed work. These heightened requirements will put more pressure on contractors, but also foster competition in terms of quality, potentially improving construction standards and benefiting the industry in the long term, noted SCB EIC.
As real estate developers adjust their strategies this year, often slashing new condo launches, the result is likely slower growth in condo construction activity, said the think tank. The value of condos in the private construction sector is roughly 86-100 billion baht per year, accounting for 15-17% of the total value. SCB EIC assessed the impact of last month's earthquake, identifying tourism, real estate, and construction as the three affected sectors.
The initial economic impact is estimated at around 30 billion baht, but it may shift depending on how quickly confidence is restored across all sectors, noted the think tank. Restoring confidence will be key to limiting further economic damage, said SCB EIC. The government must support affected parties and rebuild public trust, noted the think tank, urging systematic building safety inspections, improving emergency alert systems in high-risk areas, and ensuring clear, timely and coordinated communication.
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