The Thai Real Estate Association has shown that the situation with rising interest rates and higher costs for the development of real estate projects is a negative factor for entrepreneurs and consumers, namely for the group that pays the mortgage and those who are interested in applying for a mortgage within 1-2 years.
The Association suggests that the government constantly take measures to stimulate business in the real estate sector, including extending measures to reduce mortgage rates and reducing property rights fees. The mortgage commission will remain reduced to 0.01% until the end of 2022.
It is proposed to introduce new measures: lower the business tax from 3.3% to 0.01%, as in 2010, to help reduce costs for developers, exempt from taxes on land and construction to make it easier for the private sector to do business and consider reviewing and amending laws and regulations to attract foreign purchasing power, for example, extending the lease term. The contract is concluded for 30 years and can be extended to 90 years. In foreign countries, it can be up to 99 years old to strengthen investor confidence.
If the government supports the real estate market, it will help it grow. As a result, the country's GDP will increase by 1% and amount to ฿150 billion.
The Thai Condominium Association said that over the past 2-3 years, real estate had faced great unrest, especially apartments, which rose in price from 2005 to 2019. The price increased by 10% per year, but after COVID-19, apartment prices are falling to satisfy the purchasing power of customers.
Nowadays, condominiums are becoming popular again. Judging by the number of condominiums commissioned, their market share is 60%, while low-rise housing is 40%. And condo rents have started to rise, reflecting the return of the condo rental market, partly due to the opening up of the country.
Buyers who are going to buy property in Thailand should hurry up before a new price adjustment at the beginning of next year, when the price of land will rise by an average of 8%. It is important to note that mortgage easing and other incentives are still in effect.