Property Abroad
Blog
State Housing Bank: new home prices are expected to rise

State Housing Bank: new home prices are expected to rise

State Housing Bank: new home prices are expected to rise

Housing prices in Thailand are expected to increase by the end of this year due to rising costs of building materials and land, as well as an expected increase in the minimum wage that most parties promised during the election campaign, said Vichai Virabhan, acting director of the Real Estate Information Center (REIC) of the State Housing Bank.He added that this would be the second significant price increase in recent years.At the same time, he noted, commercial banks and other financial institutions have become more cautious in providing mortgage loans to customers after the Bank of Thailand decided not to extend the relaxation of the loan-to-value (LTV) ratio, a measure used to assess the risk of lending before a bank approves a loan. Moreover, it said a government measure to help debtors affected by the COVID-19 pandemic is due to expire by the end of this year, putting additional pressure on commercial banks to be more cautious when issuing new home loans.To offset the expected decline in purchasing power in the domestic market, he suggested that the new government should revise the foreign ownership ratio for apartments in tourist provinces such as Bangkok, Chiang Mai, Phuket and Chonburi to help real estate developers.
Recommended real estate
Buy in Thailand for 104600$

Sale flat in Kata with sea view 104 600 $

1 Bathroom

30.9 м²

Buy in Thailand for 460000$

Sale villa in Bang Tao with park view 459 999 $

3 Bedrooms

3 Bathrooms

133 м²

Buy in Thailand for 300475$

Sale townhouse in Mai Khao with park view 300 475 $

2 Bedrooms

2 Bathrooms

155 м²

Buy in Thailand for 281200$

Sale flat in Bang Tao with sea view 281 200 $

1 Bedroom

1 Bathroom

59 м²

Buy in Thailand for 505900$

Sale townhouse in Bang Tao with park view 505 900 $

2 Bedrooms

3 Bathrooms

211 м²

Buy in Thailand for 88900$

Sale flat in Patong with mountain view 88 900 $

1 Bedroom

1 Bathroom

45 м²

In addition, he said there was a need to review the reduction of tax reduction on transfer of ownership and mortgage registration for residential properties not exceeding three million baht to focus on specific groups of people based on their income. Vichai also suggested establishing a housing loan guarantee fund, using about 10 percent of the fees on transfer of ownership each year as seed money, which would encourage financial institutions to provide more housing loans to real estate buyers.

Comment