Thailand Business News – Thailand Business News
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Despite the Bank of Thailand announcing measures of decreasing LTV’s for condominium to 90% and the LTV’s for houses to 95% to cool the property market, developers still continued to acquire sites for residential projects. There have been concerns about an influx of foreign money into Thailand. There have been significant foreign inflows into the Thai bond and stock markets but virtually no significant foreign investment into the Thai property market.
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Thai Property Market still driven by local Investors
Recognising that sales would slow, forward-thinking companies took the opportunity to focus on their fundamentals and improve their balance sheets. This was the strategy of Hubert Viriot, CEO of the luxury developer Raimon Land, who was appointed in the midst of the crisis.
Like Raimon Land, Prinsiri did not lower its prices : it was not all bad news, however, as the recovery soon took hold in the second half and by the fourth quarter GDP posted 5.8% growth and many developers reached their annual sales targets.
The severity of the global financial crisis also saw the government introduce additional sweeteners for buyers — a 300,000-baht income tax deduction for any buyers of a new home that was transferred within 2009. At the same time, mortgage interest that could be deducted from taxable earnings was increased to 100,000 baht from 50,000 and has now become a permanent tax benefit.
