The Thai Real Estate Association (TREA) has revealed that since Myanmar began to start showing signs of opening up its country for outside investment, many Burmese have returned to their home country, which in turn has caused a construction worker shortage in Thailand.
President of the TREA, Kittiphon Pramote Na Ayutthaya, stated that the real estate sector is facing a severe labor shortage, causing delays in several housing construction plans. He said many Burmese construction workers who returned to their home country during the flood devastation in 2011 never came back because they have found more job opportunities in Myanmar, as the nation is opening up for business.
He added if Myanmar fully opens up its country, Thailand would face a huge labor problem.
Currently, many entrepreneurs have already been affected by the government’s plan to increase the minimum wage to 300 baht in April. Production costs are expected to rise. Kittiphon said they will also have to shoulder the increasing fuel prices. He concluded that all of these factors have contributed to the rise in real estate prices, which so far have gone up by 5-10%.
The association president does not believe that the flooding will happen again this year, which will give buyers more confidence in buying houses. He expects that the overall real estate sector will see a 5-10% growth in 2012.