Property developers seek proactive measures from new government
Thai real estate developers are calling on the newly formed government to implement additional measures to boost their industry, which they claim requires careful attention to remain a key driver of the country's economic growth.
Athip Bijanonda, director of Supalai Australia Holdings and honorary president of the Housing Business Association, revealed plans to meet with the new government once the new ministers take the oath of office. Speaking to Thai reporters during a field trip to Melbourne, Australia, from August 31 to September 4, Atip said that the meeting aimed to follow up on proposals for economic stimulus measures through the real estate sector.
Earlier this year, seven prominent real estate organisations formally urged the prime minister and the finance minister to invigorate Thailand's economy through the property sector, which is still experiencing a sluggish recovery.
The government has already approved some measures, such as reducing transfer fees to 1% and mortgage fees to 0.01% for housing up to 7 million baht, as well as promoting housing and condominium development for properties priced at not more than 1.5 million baht.
However, Bijanonda emphasised that there were still matters, which did not require legislative amendments, that could be considered. These include:
- Reviving the "Baan Dee Me Down" (Good House Get Loan) project, which would provide a 100,000 baht down payment subsidy to first-time homebuyers.
- Relaxing the loan-to-value measure for first and second home purchases.
- Reducing land and building tax rates in 2025 to alleviate the burden on businesses and the general public.
"The real estate business has a market size of 800 billion baht per year, with 2.9 times more money circulating into the system. This will greatly stimulate the economy," Bijanonda stated.
He added that if the government implemented these measures this year, it should help create a positive signal for the overall market in 2024 and contribute to GDP expansion.
Prasas Tangmatitum, another Supalai director, highlighted the current economic situation, noting that financial institutions' reluctance to lend had affected private investment. He urged the new government to accelerate investment in large-scale infrastructure projects and expedite budget disbursement to inject money into the economy.
He suggested that the Monetary Policy Committee consider lowering interest rates before the United States does, to stimulate the economy and boost purchasing power, especially in the housing and automotive markets.
Despite the challenges facing the real estate sector, he expressed confidence that the new government would continue to implement economic stimulus measures through the property business as previously proposed.
The real estate industry remains a significant contributor to Thailand's economy, accounting for 4-5% of the country's GDP. As such, developers are keen to see the government take swift action to support the sector and, by extension, the broader economy.
