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The index rose 6.1%, but homeowners should not simply add 6.1% to the entire construction budget

Thailand’s Trade Policy and Strategy Office (TPSO) reported that the construction material price index for August 2026 stood at 113.1, up 6.1% from a year earlier. The result reflects cost pressure from energy, logistics and selected raw materials, but it does not mean every product—or every home-building quotation—rose at the same rate.

Different categories moved in different directions

Year-on-year increases were recorded for wood and wood products (4.5%), concrete products (9.6%), tiles (4.0%), surface materials (1.7%), sanitary ware (3.7%), electrical and plumbing products (12.7%), and other construction materials (15.7%). Cement declined 0.2%, while steel and steel products eased 0.6%.

A reliable estimate should therefore be based on the actual material mix in the drawings and bill of quantities (BOQ), rather than applying the 6.1% headline figure to the total contract value. A home-building budget also includes labour, building services, finishes, transport, site conditions and project-specific requirements.

What this means for homeowners in Chiang Mai and Lamphun

1. Finalise electrical and plumbing plans earlier
With electrical and plumbing products up 12.7%, clarify power loads, outlet quantities, sanitary locations, water systems and equipment specifications before procurement. Late changes can increase both material and labour costs.

2. Link concrete procurement to approved engineering drawings
Concrete products rose 9.6%, which may affect structural work, fences, paving and drainage. Orders should follow approved structural drawings and a delivery schedule aligned with construction progress to reduce repeat transport and site waste.

3. Prepare equivalent options for finishes
Tiles, sanitary ware and surface materials increased at different rates. Define the required size, durability, warranty and unit allowance, then approve suitable alternatives in advance instead of selecting only by appearance or brand.

4. Remember that not every category became more expensive
Cement and steel declined slightly, so comparing quotations and purchasing windows can still help. Buying everything too early is not always the answer because storage, damage and final-design changes create additional risk.

A practical budget-control checklist

• Complete drawings, specifications and scope before requesting final prices.
• Use an itemised BOQ separating materials, labour, transport, tax and wastage.
• State quotation validity and a written approval process for substitutions.
• Build a procurement schedule around the construction sequence.
• Set contingency according to design and site uncertainty, not one blanket percentage.
• Review the budget with the architect, engineer and estimator before signing.

For a home project in Chiang Mai or Lamphun, the index is a prompt to review the design and BOQ—not a reason to panic. Decisions based on category-level data and a site-specific procurement plan can reduce redesign, waste and unexpected cost changes.

Note: The national index is a broad market indicator, not a quotation for any individual project. Actual prices depend on purchase date, delivery location, brand, specification and order volume.

Sources
Trade Policy and Strategy Office (TPSO): https://www.tpso.go.th/news/2609-0000000004
iBusiness: https://ibusiness.co/detail/9690000088648