Bank of Thailand extends LTV easing to June 30, 2027, as property sector seeks relief in fragile economy
The Bank of Thailand has extended relaxed loan-to-value (LTV) rules to June 30, 2027, with developers welcoming the move as support for demand and liquidity amid economic uncertainty.
Thailand’s property sector has welcomed the Bank of Thailand’s (BOT) decision to extend its loan-to-value (LTV) easing measures to June 30, 2027, a move the industry says could help sustain demand and support business conditions amid a fragile economic backdrop.
The extension comes as Thailand’s real estate market continues to face broad challenges, pressured by weak domestic and external conditions and fresh uncertainty linked to the Middle East war, which has weighed on consumer confidence and overall purchasing power. With limited policy space, the state response has largely focused on extending relief measures in packages, aimed at preventing the market from deteriorating further.
The BOT’s latest decision extends the relaxed LTV rules from their previous expiry date of June 30, 2026. Industry players also expect the government’s reductions in transfer and mortgage registration fees to be extended as well.
BOT Governor Vitai Ratanakorn said the LTV extension is intended to help stimulate housing purchases and support credit growth in the system, providing an important boost for the property sector while the economy remains in recovery mode. The move follows sustained calls from three industry bodies—the Housing Business Association, the Thai Condominium Association, and the Thai Real Estate Association—for continued support measures in both the short and long term.
Industry groups call for broader support
Sunthorn Sathaporn, president of the Housing Business Association, said the LTV easing supports consumers’ home-buying decisions and helps keep the Thai property sector on a path towards recovery while the economy adjusts to ongoing pressures. He added the association expects transfer and mortgage fee reductions to be extended as well.
He said the association has previously asked the Finance Ministry to extend the reduction of transfer and mortgage registration fees to 0.01%—which was due to expire mid-year—by another one to two years. It has also urged the BOT to extend the relaxed LTV measures by one to two years, as they were also set to expire mid-year.
Beyond financial relief, the association has proposed that the Land Department extend the legal term for “usufruct-style rights” from 30 years to 60 years, to bring ownership structures into a clearer and more transparent legal framework, reduce the use of nominee-style arrangements, and introduce higher taxes on foreign buyers to draw more offshore funds into Thailand’s economy. It has also called for a 50% reduction in the land and buildings tax for one to two years.
Sunthorn said temporary tax relief would help offset rising development costs, improve liquidity, and allow developers to delay housing price increases—benefiting consumers and overall market stability. He described the proposals as short- to medium-term measures to “support the market, stimulate demand, and strengthen liquidity” in parallel, while the association is also preparing additional structural proposals to help improve demand, supply, and financial system stability over the medium to long term.
Prasert Taedullayasatit, president of the Thai Condominium Association, said the LTV easing is a “very positive” signal for the sector, which is currently being buffeted by economic headwinds. He said the association has also proposed longer-term measures, including a 50% cut in land and buildings tax to ease land-related cost burdens, extending usufruct terms from 30 to 60 years to encourage investment, and levying taxes on foreign homebuyers with proceeds used to support housing for low-income groups and public infrastructure investment.
He also cited proposals for low-interest loans, encouraging commercial banks to lend to qualified borrowers, and aligning lending rates more closely with the policy rate.
Pornarit Chounchaisit, president of the Thai Real Estate Association, said the property market remains in a prolonged slowdown, but described the extension of measures as a positive step that could help stimulate demand among buyers who are genuinely ready to purchase. He added that developers are likely to use the measures alongside sales strategies to attract demand, in what he described as a buyer-friendly market amid intense competition to clear inventory.
