First-home scheme may be revised amid cool response

 Property firms agree with the idea of revising the package, as the market is still showing slow growth.
Kittiratt said after the opening of the 26th Home & Condo Show yesterday that he would study the programme, which offers zero interest for the first three years of a mortgage for people who buy their first home if it costs less than Bt1 million.
“We may increase the [maximum] price to match demand in the market,” he said, declining to give more details.
Earlier, GH Bank president Worawit Chailimpamontri said it had provided mortgages amounting to only Bt2 billion so far under the scheme.
Pruksa Real Estate director and chief business officer Prasert Taedullayasatit said that if the government revised the policy, it would be good for the property market during a time of slow growth.
He suggested the price cap should be at least Bt2 million to match the demand in the housing market, he said.
He added that demand for housing purchases in the first quarter of this year had continued to be lower than in the same period of 2011, especially in locations that faced flooding last year.
“We believe that if the government revised upwards the [maximum] price for the first-home scheme, that would help the market recover in the second half of this year,” he said.

GOOD FOR OVERALL MARKET
The Housing Business Associa-tion’s Issara Boonyoung said revising the programme would be good for the overall market, which has few homes priced lower than Bt1 million. If the price cap were between Bt1.5 million and Bt2 million, that would be a big help.
The property market in the first quarter of this year has seen slow growth compared with the same period last year because of lingering flood fears, he said.
However, the association estimates the market will recover in the second quarter.
Yesterday the Thai Real Estate Association, the Thai Condominium Association and the Housing Busi-ness Association opened the Home & Condo Show at Queen Sirikit National Convention Centre in Bangkok, which will run until Sunday.
There are 600 residential projects worth more than Bt100 billion showcased at the event.
Many property firms and commercial banks are offering special financial packages to boost sales and new mortgages.
For example, NC Housing has joined with Siam Commercial Bank and Kasikornbank to offer mortgages with zero interest for the first six months.
Buyers of the Pleno and Aspire projects by Asian Property Develop-ment at the show will get iPhone 4s.
Bangkok Commercial Asset Man-agement offers zero interest for the first nine months of a mortgage for buyers of its homes at the event.
The three associations target sales worth Bt3 billion from the four-day event.