KKP sees housing prices rising 10% amid oil crisis

Kiatnakin Phatra Financial Group (KKP) forecasts that a surge in global oil prices will push housing prices up by 10% this year, primarily affecting homebuyers in the mass-market segment.

- SOMRUEDI BANCHONGDUANG

Rising oil prices, driven by escalating tensions in the Middle East, have significantly increased construction material costs. This has created a new cost base, prompting developers of new housing projects to raise selling prices by 5-10%, according to KKP’s corporate lending division.

Given the assumption of rising house prices, KKP expects the mid-to lower-income housing segment to face a substantial slowdown. Meanwhile, property transfers are projected to decline to 290,000 units in 2026, down from 316,214 units in 2025, marking the lowest level in eight years.

At present, Thailand consumes around 124 million litres of refined oil per day and relies heavily on crude oil imports.