Leading real estate developers are urging the new government led by Prime Minister Srettha Thavisin to come up with fresh strategies to increase the sale of residential property.
Srettha was a real estate magnate before going into politics.
The president of the Thai Condominium Association, Peerapong Jaroon-ek, suggests that the new administration reinstate subsidies to aid first-time homebuyers. A boost to the real estate market, which accounts for 12% of the nation’s GDP, could have a very large multiplier effect, he adds, as such actions would have a multiplier effect on the economy.
“The entire supply chain will benefit if the government offers first-home purchase subsidies,” Peerapong continues.
Low ownership transfer and mortgage fees were historically granted as subsidies to first-time homebuyers.
Peerapong urged the administration to push back the implementation of the loan-to-value (LTV) benchmark until 2025.
Additionally, he recommended that the government issue foreigners buying real estate worth Bt3m and Bt5m, respectively, with three-year and five-year visas.
He believes that a long-stay visa offer would increase condo sales.
The president of the Housing Business Association, Wasan Kiangsiri , asserted that the government must act quickly to resuscitate the economy first. He claimed that as soon as the economy improved, the real estate market would follow suit since it would increase homebuyers’ purchasing power.
He continued by saying that the government ought to take steps to make it simpler for those with middle- and low-income levels to own homes.
Wasan suggested that rather than placing the cap at Bt3m, the government should lower the ownership transfer and mortgage fees for all new home purchases.
In order to lower expenses for real estate developers, he also suggested that the government consider lowering the land and property tax.
The president of the Thai Real Estate Association, Pornnarit Chuanchaisit, is urging the new administration to implement an “affordable housing” policy that would allow low-income individuals to buy or rent properties in the core of Bangkok.
Low-wage earners, he claimed, must remain in the city centre in order to find work, but they cannot afford to buy or rent pricey homes.
