Thailand Real Estate Market: Attracted THB 650 Billion in Funds within Three Months

Jul 12, 2024

by Internet

Market Insight
Thailand's real estate market
housing support
Thai property market

Abstract : With the continued implementation of these measures and the gradual appearance of the effect, the Thai real estate market will usher in a more stable and sustained growth in the future.

The Thai Deputy Minister of Finance, Pongpu, announced today that the stimulus measures implemented in the real estate market since April this year have yielded significant results, attracting over THB 650 billion in capital flow within just three months. The specific effects of these measures are as follows:

Firstly, the government reduced property registration and legal transaction fees from 2% to only 0.01%, and lowered housing loan registration fees from 1% to 0.01%, greatly encouraging real estate transaction activities. So far, 40,372 individuals have benefited from these fee reductions, including 29,047 property transfers and 11,325 apartment transfers.

Secondly, to promote housing purchases among low-income earners, the government implemented tax incentives, exempting real estate companies from corporate income tax for three years when constructing individual residences priced below THB 1.5 million. As of June 10th, the total value of these projects has reached THB 332.7869 billion, effectively enhancing the purchasing power of the low-income group.

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Additionally, the "Happy Home" housing loan project, totaling THB 20 billion, aims to support middle and low-income earners in purchasing homes priced below THB 3 million. As of now, 12,576 individuals have received a total of THB 178.12 billion in loan support, accounting for 89.06% of the project's budget.

Lastly, the "Happy Life" housing loan project, also amounting to THB 20 billion, targets individuals who own private residences or have redeemed mortgages from other financial institutions. This project offers an average interest rate discount of 2.98% for the first three years. Currently, 8,141 individuals have benefited from this, with total loans amounting to THB 155.88 billion, representing 77.94% of the project's budget.

These measures demonstrate the government's significant success in actively stimulating the vitality of the real estate market and supporting the housing needs of low-income groups. By reducing transaction costs and tax burdens, as well as providing favorable loan conditions, the government has effectively promoted the development of the real estate market while helping more people achieve their housing dreams.