3 Real estate demands 6+1 plan; Pushes new govt on 60-year leases
3 Real Estate groups propose 6 urgent steps (tax/fee cuts, rate drop) to the caretaker government, plus a long-term 60-year lease plan for the new administration.
- Three major Thai real estate associations have collectively proposed a "6+1" plan to stimulate the economy and the property market.
- The "6 Quick Measures" are aimed at the current caretaker government and include reducing transfer fees, cutting land taxes, and calling for a policy interest rate cut.
- The "+1" measure is a long-term proposal for the new government to extend residential leasehold rights from the current 30 years to 60 years.
- The goal of the 60-year lease extension is to make housing more accessible for low-income individuals and to attract foreign investment.
During the four-month term of the caretaker government, which is primarily focused on addressing the public's cost of living, the Thai real estate sector, one of the country's key economic engines with a market value of 800 billion to 1 trillion baht per year, has united.
Three main associations: the Thai Condominium Association, the Thai Real Estate Association, and the Housing Business Association, have collectively proposed a set of urgent measures, the "6 Quick Economic Stimulus Measures," to the current government.
Prasert Taedullayasatit, President of the Thai Condominium Association, stated that the "6 Quick Measures" are practical proposals that can be implemented immediately within the limited timeframe of the caretaker government.
The goal is to achieve a "Quick Big Win" for the economy that will positively impact consumer purchasing power and the real estate market's recovery.
The 6 Quick Measures include:
1. Reduce Transfer and Mortgage Fees: Cut both fees to 0.01% for all housing units priced up to 7 million baht, and extend the measure's duration until June 30, 2026, to accelerate ownership transfers during the economic slowdown.
2. Expand SME D-Bank (SME Development Bank) Role: Extend the role of the Thai Credit Guarantee Corporation (TCG) to partially guarantee (20%) housing loans for freelancers or those with unstable incomes to improve their access to credit.
3. Implement Risk-Based Pricing: Seriously adopt a risk-based pricing system, allowing banks to set interest rates according to the borrower's risk profile. This would increase the chances of loan approval for middle-to-lower-income groups.
4. Reduce Land and Building Tax: Cut the tax by 50% for a period of 1-2 years to ease the burden on developers and stimulate new investment in the housing market.
5. Establish a "Warehouse Debt" Policy: Create a policy to refinance informal or high-interest debt using partially paid-off homes as collateral. This aims to alleviate household debt problems and boost domestic purchasing power.
6. Call for a Policy Rate Cut: Ask the Bank of Thailand (BOT) to reduce the policy interest rate by 0.5% (from 1.5% to 1%) to ease interest burdens and stimulate investment in the real estate sector, which directly influences consumption and the debenture market.
Waiting for the New Government: Proposing "60-Year Leasehold Rights" Extension
In addition to the 6 urgent measures, the three associations are preparing "+1 Measure" to propose to the new government next year: the extension of residential leasehold rights from 30 years to 60 years by amending the Act on Real Estate Lease with the Right of Purchase (or a similar property-based rights law).
This is intended to lay a strong foundation for the long-term growth of the Thai real estate market.
This concept would make it easier for low-income individuals and those with limited access to credit to "rent instead of buy."
At the same time, it would attract foreign investment, allowing the government to collect increased taxes and use this revenue to establish a fund supporting housing for vulnerable Thais without using the state budget.
Market Recovery Driven by 4 Positive Factors
Prasert noted that although the government has limited time this year, implementing additional stimulus measures within the next two months would provide a significant boost, enabling the real estate market to continue its recovery until 2026.
Positive signs observed in the second half of 2025 include: new projects launching at "retro prices" approximately 10 years lower than the market; price reductions on older projects helping to attract purchasing power; the relaxation of Loan-to-Value (LTV) regulations facilitating home loan access; and increased competition among banks leading to greater loan approvals following interest rate cuts.
"Quick Big Win" vs. "Quick Big Vote"
However, Prasert reflected that the current caretaker government seems more focused on a "Quick Big Vote" than a "Quick Big Win." This refers to issuing short-term policies aimed at maintaining political support, such as minor debt resolution schemes or " Let's Go Halves Plus " (a co-payment scheme), which covers 20-30 million people.
"The three real estate associations are therefore preparing to propose the '6 Measures + 1' to various political parties to include them as real estate policies in their election campaigns next year, hoping that the real estate sector can once again become a vital engine driving the Thai economy."
Housing and Condo Expo: A Check of Purchasing Power
Concurrently, from October 30 to November 2, the three real estate associations are holding a major event, the "48th Housing and Condo Expo."
It features over 1,000 projects from developers, with ready-to-move-in and new-launch projects, amidst intense competition and promotional offers.
Sales are expected to exceed 10 billion baht, amidst new hope for the real estate sector as it awaits a push from the new government's policies.
Bussakorn Phuse
