Extended first-home scheme won't help market, developers say
Although the government's first-home scheme has been extended to next June 28, that will not give any extra zest to the property market, developers said yesterday.
This programme offers zero interest for the first three years of a mortgage to those who buy their first home at a price not exceeding Bt1 million. The campaign kicked off in October of last year.
However, when it expired on September 30 of this year, it had only 8,701 accounts worth Bt5.34 billion, or just 26 per cent of the target of Bt20 billion, so the Cabinet yesterday gave the scheme more time.
First-home buyers will have to sign a loan contract with the Government Housing Bank by June 28, 2013.
Issara Boonyoungm, president of the Housing Business Association, said the campaign was not much help because residences costing just Bt1 million or less did not match the demand in the market.
"The association has asked the government to revise the definition for the first home from not over Bt1 million to not over Bt1.5 million, but the government was not interested in doing anything.
"I think that although extended, this programme will not change anything for the property market next year," he said.
Opas Sripayak, managing director of LPN Development, said that although the company had units priced under Bt1 million, customers benefiting from this campaign were fewer than estimated because some of them were not buying their first home.
Some of them are looking for a second home, especially after the flood hit Greater Bangkok last year.
