Thailand extends 0.01% property fee cut in one-year lifeline for homebuyers

Thailand’s Cabinet has extended ultra-low property transfer and mortgage registration fees for another year, keeping a key housing stimulus measure in place as the government seeks to ease costs for homebuyers and support a fragile real estate recovery.

The measure, approved on Tuesday, cuts both the property transfer registration fee and mortgage registration fee to 0.01 per cent, covering eligible residential property transactions until June 30, 2027, after publication in the Royal Gazette. The measure continues a similar 2025 scheme that was due to expire on June 30, 2026.

Lower fees aimed at easing buyer costs

Government spokesperson Ratchada Thanadirek said the Cabinet approved the 2026 measure to promote purchases of both newly built and second-hand properties, while reducing the financial burden on people seeking to own their own homes.

Under the scheme, the property transfer fee will be cut from the normal rate of 2 per cent to 0.01 per cent, while the mortgage registration fee will fall from 1 per cent to 0.01 per cent.

The measure applies to eligible purchases of detached houses, semi-detached houses, townhouses, commercial buildings, land with such buildings, and registered condominium units. The purchase price and official appraisal value must not exceed 7 million baht, while the mortgage amount must also not exceed 7 million baht per contract. Sales of partial interests are excluded.

Support targets Thai individual buyers

The fee cut is aimed at Thai individual buyers seeking to buy homes for their own use, as well as sellers of residential buildings, commercial buildings and condominium units.

The Cabinet also approved two draft Interior Ministry announcements prepared by the Department of Lands. One covers registration fees under the Land Code for residential and commercial buildings, or land with such buildings. The other covers registration fees under condominium law for condominium units.

The announcements will take effect from the date they are published in the Royal Gazette and remain in force until June 30, 2027.

Real estate sector gets demand boost

The renewed measure comes as Thailand’s property sector continues to face weak purchasing power, strict mortgage approvals and slow market recovery. Property industry groups had earlier called for the 0.01 per cent transfer and mortgage fee measure to be extended for another one to two years, saying it would help support transfers and absorb housing stock.

Industry figures have warned that easing loan-to-value rules alone would not be enough to revive the market, with the housing sector still facing high household debt, cautious bank lending and uneven income recovery.

The Cabinet’s decision therefore acts as a direct transaction-cost relief measure. By lowering fees payable at transfer, the government hopes to make purchase decisions easier for buyers and keep activity moving across the real estate supply chain, including construction, materials, furniture, electrical appliances and employment.

Finance Ministry expects GDP lift

The Finance Ministry estimates the measure will help generate about 540.81 billion baht in property transactions per year, increase investment by around 305.81 billion baht, and raise GDP by up to 1.06 per cent per year compared with a scenario without the measure.

The government said the policy would help sustain confidence and support the recovery of the property sector, which has been affected by the wider economic slowdown and the impact of tensions in the Middle East.

Local authorities may lose revenue

The measure also comes with a fiscal trade-off. Lower transfer and mortgage registration fees could reduce income for local administrative organisations, which normally receive revenue from property-related transactions.

The Cabinet has therefore assigned the Budget Bureau and relevant agencies to consider allocating compensation to local administrative organisations as appropriate, to ensure they have enough funding to carry out their normal duties.

For Thailand’s property market, the extended 0.01 per cent fee measure is more than a technical cut. It is a one-year policy bridge designed to help real homebuyers, support developers’ transfers and prevent the housing market from losing further momentum during a still-fragile recovery.