PM promises to set up taskforce to look at real estate proposals
Prime Minister and Finance Minister Srettha Thavisin on Wednesday promised to establish a taskforce to quickly consider proposals submitted by seven real estate associations regarding problems and challenges faced by the sector.
Srettha, a former property tycoon, posted on X on Wednesday that the real estate market has been slowing since 2019, which he sees as an “important issue that needs immediate fixing”. He added that stimulating the property market will also have a multiplier effect on other related businesses.
Issara Boonyang, president of the Thai Chamber of Commerce’s Housing Business Association, led representatives of six other real estate associations in Thailand to submit the 8-point proposals to the premier on Wednesday.
The six associations are: The Housing Business Association, the Thai Condominium Association, the Thai Real Estate Association, the Real Estate Sales and Marketing Association, the Thai Real Estate Broker Association, and the Home Builder Association.
After meeting with Srettha, Issara said that the PM had promised to establish a taskforce to consider which proposals can be implemented and prioritise them based on the worthiness and budget required.
The eight proposals are as follows:
1. Changing the criteria for government’s measure that reduces property transfer and mortgage fees to 1% and 0.01%, respectively, to cover property priced 5-7 million baht (from currently not over 3 million baht). Alternately, the measure should be applied to the first 3-million baht of a property priced at 5-7 million baht.
2. Granting an income tax break for people who wish to build their house on their own land at 10,000 baht per 1 million baht of house value, capped at 100,000 baht tax break.
3. Granting a soft loan (3% interest rate) to low-income earners who wish to buy their first house, as well as providing 100,000 baht as down payment subsidy for first house buyers.
4. Amending the Interior Ministry’s criteria for land for residential and commercial purposes. Criteria for detached houses should be lowered from minimum 50 sq.wah to 35 sq.wah, twin houses from 35 sq.wah to 28 sq.wah, and townhouses from 16 sq.wah to 14 sq.wah.
5. Reducing land and building tax by 50% for a year to allow the real estate sector to fully recover.
6. Revising regulations for property holding of foreigners, such as extending maximum renting period from 30 to 60 years, granting the right to buy property worth 10 and 5 million baht for holders of 10- and 5-year visa, respectively.
7. Scrapping Bank of Thailand’s loan to value (LTV) policy to help stimulate the property market.
8. Allowing property developers to file for the EIA (environmental impact assessment) permit before land transfers are completed, to reduce the financial risk to developers in case the permit is not approved.
