“We hope the Cabinet will finalise the measures at its meeting next week and that they will be effective immediately,” Thai Condominium Association president Prasert Taedullayasatit said.
He was speaking after a press conference to promote the 33rd “House and Condo Show”, which will take place from October 8-11 at Queen Sirikit National Convention Centre in Bangkok.
Besides Prasert’s group, the Thai Real Estate Association and Housing Business Association will press the Finance Ministry to move ahead with the measures.
Earlier, the three associations proposed four measures to the ministry to help the property market, especially the lower-income segment.
The first of these was easing the qualifications for mortgage approval, especially for lower-income people who own a business or freelance.
The second measure would extend the mortgage-repayment maximum from 30 years to 50 years so as to reduce monthly instalment amounts.
Third, they proposed doubling the maximum to Bt3 million on loans getting a special interest rate from the Govern-ment Housing Bank.
The final proposal was a reduction of transfer and mortgage fees to 0.01 per cent.
“The Finance Ministry should finalise this decision and inform the market as soon as possible, because up to 5 per cent of customers who have a home ready to transfer are delaying their decision while they wait and see if there will be a stimulus package,” said Pornnarit Chonchaisith, president of the Thai Real Estate Association.
The current final quarter of the year should see Bt120 billion worth of residential projects in Greater Bangkok transferred to customers, of which Bt80 billion worth are condominiums, and the rest detached houses and townhouses.
Prasert said that if the measures are not approved for the fourth quarter, the property market in Bangkok and its suburbs will grow by 10 per cent this year, with transfers to buyers worth Bt330 billion. However, if the measures become effective this quarter, the market will grow by 13 per cent, with transfers worth up to Bt350 billion.
He noted that when the property market is doing well, it has a knock-on effect on related businesses such as furniture and home appliances. This is the best way to boost the domestic economy, he said.
Meanwhile, Housing Business Association president Atip Bichanond said, the 33rd House and Condo Show should also help boost the property market this quarter, targeting sales worth Bt3 billion from the four-day event expecting 100,000 visitors.
According to Knight Frank Chartered (Thailand), 53,309 condominium units were available for sale in Greater Bangkok at the end of June, most of them, 38,163 units, located in peripheral areas. In the first six months, 34,439 units from 71 condominium projects were launched in Bangkok, of which 20,780 units from 37 condominium projects were launched in the second quarter.
The supply gained pace, though prices of peripheral projects increased only slightly compared with those in the central business district.
The average price of CBD condominiums was Bt212,588 per square metre in the second quarter, an increase of 18.5 per cent over the same period last year.
Published : October 02, 2015
By : SOMLUCK SRIMALEE THE NATION