Thailand urged to extend 0.01% transfer fee to help revive housing market

Thailand’s property sector continues to face pressure on all sides, from weak purchasing power and high household debt to stricter mortgage lending by financial institutions.

The situation has prevented the residential market from returning to its full growth potential, even as many developers have tried hard to adapt by offering promotions, cutting prices and accepting significantly lower margins to clear stock and stimulate sales.

However, one major factor still holding back homebuyers’ decisions is the cost due on the day of ownership transfer, which remains a large expense for many buyers.

Hopes rest on 0.01% transfer and mortgage fees

Sunthorn Sathaporn, president of the Housing Business Association, said the measure reducing ownership transfer and mortgage registration fees to 0.01% is one of the key mechanisms that can significantly ease the financial burden on homebuyers.

At a time when borrowing costs remain high, reducing expenses on transfer day can make it easier for people to decide to buy a home, improve access to housing loans and bring the dream of home ownership closer to reality for Thai people.

The measure does not benefit only buyers. It also helps support the property sector, one of the country’s key industries, which is linked to many related businesses, including construction materials, furniture, electrical appliances and employment in the construction sector.

Three property associations ask government to extend measure by 1-2 years

Given the importance of the measure, three real estate associations have jointly submitted a letter and requested a meeting with the government to discuss a proposal to extend the reduced transfer and mortgage registration fees for at least another one to two years.

The private sector believes extending the measure would help support purchasing power while the economy has yet to fully recover. It is also seen as an important tool to stimulate economic activity without requiring a large state budget.

There has also been a proposal to drive the green economy through the property sector, ensuring that future housing development aligns with sustainability principles and becomes another key long-term driver of Thailand’s economy.

Under the current measure, the ownership transfer fee has been reduced from 2% to 0.01%, while the mortgage registration fee has been reduced from 1% to 0.01%.

For a home priced at 5 million baht, buyers would previously have had to pay combined transfer and mortgage registration fees of up to 150,000 baht. Under the reduced-fee measure, that burden falls to around 1,000 baht.

This provides a major incentive for people considering buying a home, especially genuine end-users, who currently form the main purchasing base of the market.

The 0.01% transfer and mortgage fee measure covers detached houses, semi-detached houses, townhouses, commercial buildings and condominiums, both new and second-hand.

The key condition is that the purchase price and official appraised value must not exceed 7 million baht per contract, while the mortgage amount must also not exceed 7 million baht per contract.

Eligible buyers must be Thai individuals, and the ownership transfer and mortgage registration must be completed at the same time.

The current measure is due to expire on June 30, 2026.

A key economic bet for the second half

As Thailand’s economy continues to face uncertainty, stimulating the property sector is being viewed as one of the more effective options because it is a high-value industry connected to a wide business supply chain.

The government’s decision on whether to extend the transfer and mortgage fee reduction is therefore not only about the housing market. It also reflects the broader direction of economic stimulus.

Amid a still-sluggish market, the measure could become an important push that helps homebuyers, developers and the Thai economy move forward at a time when confidence still needs additional support.