THE 2025 COSTS OF CONSTRUCTIONS
FOR
THE REPLACEMENT COST
NEW
To standardize the basis for calculating “replacement cost new” in valuing properties using the Cost Approach to Value, the following annual standard construction costs have been recently established. This is considered an estimate. Adjustments to specific conditions can be made to suit each property.
The cost of construction is in Baht/sq.metre. The costs consist of expenses for building materials for structural, architectural, and system works, labour costs, operational costs, and contractors' profits, as well as the Value Added Tax (VAT) of 7% and professional premiums of 0.96%. No inclusion is extended to interests, project management costs, design, sale costs, and the like, which are not directly related to the construction.
This effort has been conducted annually since 2000. The Valuers Association of Thailand appointed a working group of valuation experts to work out the costs of these constructions.
In 2025, it is anticipated that additional types of buildings will be included in these standard costs. In addition to costs per sq.metre, the costs will be divided into different stages of construction works such as piling, structure, system work, and architectural finishing.
Standard Costs of Construction for valuation purposes were recently announced. Construction costs for wooden housing have increased by some 6% September 2025. However, for most concrete construction projects with steel as an integral part of the structure, costs decreased by approximately 6-8% in the cases of tennis courts, on-ground parking lots, and warehouses. The costs of constructing shophouses and underground parking decreased by 3-4%. However, in the case of high-rise buildings, prices reduced insignificantly. In September 2025, the prices of most building materials remained unchanged, except for steel, which experienced an 8% price increase. However, this will not significantly contribute to reducing overall construction prices.
