The Housing Business Association and the Thai Condominium Association announced that they will soon send a letter or talk to the Bank of Thailand (BOT) due to the fact that BOT will not resume measures for the supervision of housing loans and other housing-related loans or LTV measures.
The Association does not agree to the suspension of benefits because the Thai economy has not fully recovered. In addition, interest rates tend to constantly increase, which will affect the purchasing power of citizens. In addition, inflation and the cost of goods continued to rise.
Thus, the abolition of mortgage benefits is one of the factors that can slow down the growth of the real estate market in 2023 or even introduce it into negative indicators. The economic forecast for 2023 still predicts risk factors for inflation, rising interest rates and production costs.
The Bank of Thailand believes that the economy and the real estate market are recovering due to tourists who return to the country. However, this does not mean that the Thai economy will recover immediately. In addition, bad times await the global economy in 2023. While Thai exports are expected to reduce growth.
More recently, the Ministry of Finance has considered the possibility of resuming incentive measures in the real estate sector: reducing the commission for obtaining ownership rights and reducing mortgage interest. However, an unambiguous answer has not yet been given.