According to a report from the Real Estate Information Center (REIC) of the Thai Housing Bank, housing sales in Bangkok and surrounding areas decreased by 9.7% in the last quarter of the previous year, while available units increased by 10%, reaching 195,059 units.
As a driving force of the national economy, the real estate industry is crucial for the Thai government. Consequently, supportive measures need to be implemented to foster the stable development of the real estate market. Prime Minister Seta, who has a background in real estate business, has a profound understanding of the current situation.
Recently, Prime Minister Seta met with representatives from seven real estate organizations to discuss measures to stimulate the national real estate market. The Prime Minister stated that the market situation has been slowing down since 2019, posing an urgent issue that needs to be addressed as stimulating the real estate market will have a multiplier effect on many industries. To tackle this challenge, various measures and suggestions were proposed.
Firstly, a reduction in personal income tax is a significant initiative. Individuals engaged in land trading, house construction, or residential construction businesses can enjoy a personal income tax reduction of 10,000 Thai Baht, with a maximum of up to 100,000 Thai Baht. For houses priced below 10 million Thai Baht, individuals must hold a stamp duty contract to apply for tax reduction.
Secondly, the government is committed to ensuring that middle and low-income groups have access to their first homes and providing preferential interest rates. Middle and low-income individuals can enjoy a 3% loan interest rate for five years and benefits such as reduced ownership transfer and mortgage fees.
Additionally, the government plans to reduce the construction allocation area for housing projects in all 77 provinces nationwide. Detached houses will be reduced from 50 square meters to 35 square meters, semi-detached houses from 35 square meters to 28 square meters, and townhouses from 16 square meters to 14 square meters. This aims to meet the housing needs of more people.
To alleviate the burden on businesses, the government also plans to reduce land and building taxes by 50% until the economy fully recovers. Specifically, public service buildings such as clubs, recreational facilities, and swimming pools will pay land taxes at the same rate as utilities.
Furthermore, the government proposes policies to support foreigners settling in Thailand. The lease term for rented land will be extended from 30 to 50 years. Foreigners purchasing properties worth 10 million Thai Baht will receive a 10-year long-term visa, while those with properties valued below 5 million Thai Baht will obtain a 4-5 year visa.
Finally, to promote the recovery of the real estate market, the government has decided to continue implementing Loan-to-Value (LTV) measures for loans exceeding property values to prevent overheating in the market.