In Thailand, a number of real estate market-boosting measures may be extended until the end of 2022. The loosening of loan-to-value (LTV) limits was the most significant. It allowed homebuyers to take out up to a 100% mortgage of the total property price for first or second mortgages without down payments.
The Minister of Finance said the government is discussing the extension of the real estate measures that expire at the end of the year. The last measure came into force in October 2021.
There is some scepticism about the potential effectiveness of this extension. Some experts point out that buyers may postpone buying decisions as there is no longer a set deadline. In this case, developers are likely to start their own promotional events to attract customers.
Between the fourth quarter of 2021 and the first quarter of this year, a nearly 14% increase in demand for homes in Chonburi was driven almost entirely by interest in homes worth no more than 3 million baht. Meanwhile, in the first quarter of 2022, demand skyrocketed by 57.2% compared to the previous quarter.
It is interesting to note that, in Chonburi, this is the first time since the beginning of the COVID-19 pandemic that the total number of requests for houses worth 3 million baht or less exceeded the 3-5 million baht and 5-10 million baht price segments.