30 Dec 2021
Real Estate and Construction
The year 2022 will remain another challenging year for the housing market. However, the market will be supported by measures for reduction of property ownership transfer and mortgage registration fees to 0.01 percent for residential units with price of up to THB 3 million – which will be extended to December 31, 2022 – will be a supporting factor to prop up the residential property market, following the easing of loan-to-value (LTV) regulations by the Bank of Thailand (BOT) in October 2021. As a result, the home buying activities in the market is expected to pick up beyond what was seen in 2021.... Read more
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22 Oct 2019
Since the beginning of 2019, the residential property market has faced several challenges due to a slowing economy, which affects the confidence of buyers. Moreover, the purchasing power of consumers has not fully recovered. The loan-to-value (LTV) ratio requirement, designed to control the mortgage quality in the system, and accumulated unsold inventory covering various price levels, have prompted property developers to launch a series of marketing campaigns to energize the market since the beginning of this year. Moreover, the government has issued various stimulus measures to boost the real estate market such as the fee reduction for property transactions and tax waivers for first-home buyers to help people wishing to own their first home and low-income earners.... Read more
9 May 2019
The package includes the Finance Ministry’s residential property stimulus measure which targets the customer group with real demand. They are first-time buyers planning to buy a house with reasonable price. Additionally, there is a measure to ease the spending burden of low-income and middle-income earners who want to purchase a residential property worth up to THB1 million (in line with the 1-million-unit housing scheme). This group of homebuyers represents a large customer base. The stimulus package has different objective from that of the loan-to-value (LTV) requirement issued by the Bank of Thailand to ensure mortgage loan approvals are in consistence with borrowers’ debt service ability (e.g., purchasing for speculation/investment) and to govern loans approved for expensive housing units to oversee the quality of housing loans and financial stability of the system.... Read more
24 Jan 2019
In 2019, residential property developers in Greater Bangkok may face more challenges in bolstering sales because purchasing power overall has not fully recovered and there are various economic factors affecting consumers’ decision to purchase homes. Under this circumstance, real estate developers may need to tap into consumer segments having strong demand and ability to purchase homes over the next 1-2 years, such as Gen-Y consumers, who want to buy their first homes. ... Read more