Stimulus campaign expected to revive property market
Property Developers expect the housing market to recover, with the number of people registering for the government’s stimulus campaign ‘Good House with Down Payment’ reaching 100,000 on December 11.
The campaign opened on November 27, and will run until March 31, 2020, offering Bt50,000 cash-back per buyer on down payment. Also, buyers must earn Bt100,000 a month and be registered with the Revenue Department’s tax database.
In late October, the government approved a drop in both transfer and mortgage fees to 0.01 per cent from 1.0 per cent and 2.0 per cent for those residences with maximum Bt3 million price. This measure will work from November 2019 to the end of 2020.
Housing Business Association president Atip Bijanonda has said that ‘Good House with Down Payment’ will help those who bought condominiums two years ago.
LPN Development’s chief executive officer and executive director, Opas Sripayak, said that if there are 100,000 persons registering in the campaign, the market’s earnings will be at least Bt100 billion.
“The effectiveness of the campaign will be a good sign for the total economy of Thailand,” he added.
Meanwhile, an academic of the Thailand Development Research Institute, Norarit Pisolyabutr, has said that the government prioritised short-term problems regardless of those long-term, causing entrepreneurs to delay launching projects and leading to the market slowdown. “This situation brought long-term risk to the market, and once a big problem happens, those stimulus measures would be useless,” he added.