Real estate developers urge Pheu Thai-led govt to launch measures to boost property sales
Top property developers are calling on the new Prime Minister Srettha Thavisin-led government to devise new measures to boost the sale of residential property.
Srettha himself was a real-estate tycoon before entering politics.
Peerapong Jaroon-ek, president of the Thai Condominium Association, said the new government should re-introduce subsidies to help first-home buyers. He said such measures would serve as a multiplier effect for the economy, adding that a boost in the property sector could lead to a very high multiplier effect as it constitutes 12% of the country’s GDP.
“If the government offers first-home purchase subsidies, it will bode well for the entire supply chain,” Peerapong added.
Subsidies offered to first-home buyers previously included low ownership transfer and low mortgage fees.
Peerapong also called on the government to postpone the enforcement of the loan-to-value (LTV) measure to 2025.
He also suggested that the government grant three-year and five-year visas to foreigners buying property worth 3 million and 5 million baht, respectively.
He reckoned that an offer of a long-stay visa would stimulate condominium sales.
Wasan Kiangsiri, president of the Housing Business Association, meanwhile, said the government should rush to revive the economy first. He said once the economy picks up, the property sector would also pick up as it would boost the purchasing power of home buyers.
He added that the government should also introduce measures to make it easier for middle- and low-income earners to buy houses.
Wasan said the government should reduce the ownership transfer and mortgage fees for all new house purchases instead of setting the ceiling at 3 million baht.
He also advised the government to consider reducing land and property tax to reduce costs for property developers.
Pornnarit Chuanchaisit, president of the Thai Real Estate Association, said he wanted the new government to issue an “affordable housing” policy for low-income earners to buy or rent homes in the heart of the city.
He said low-income earners need to stay in the middle of the city to work, but they cannot afford to buy or rent expensive residences.
