Cabinet to mull huge property stimulus package
Measures include low interest loans and easing borrowing rules for homebuyers
Finance Minister Pichai Chunhavajira said ministers at Tuesday’s Cabinet meeting will consider several measures to stimulate the property market this week.
The Finance Ministry will ask the Cabinet to approve a budget of 55 billion baht for low interest loans of up to 3 million baht for homebuyers, Pichai said on Monday.
It will also propose a 5-billion-baht budget for low interest loans of up to 100,000 baht for house repairs.
Additionally, Pichai said he will ask the Cabinet to approve a 10-billion-baht budget to provide soft loans to workers for house purchases, in collaboration with the Labour Ministry.
He said he will also push for an extension of the reduction of transfer and mortgage fees to 0.01%. The reductions are set to expire at the end of this year.
Pichai, who doubles as a deputy PM, said the Finance Ministry was still drafting details of the extensive package of measures to stimulate the property market.
He said he was also considering lowering the loan to value ratio (LTV) benchmark to allow banks to approve loans to homebuyers more easily.
Pornnarit Chuanchaisit, president of the Thai Real Estate Organisation, on Monday urged the Bank of Thailand to cut the policy interest rate again to boost recovery in the property market.
Pornnarit said he wanted the government to announce a package of measures to stimulate the property market, including lowering the LTV measure.
