Thailand Business News – Thailand Business News
 |
In today’s market, Thailand’s condominium act implemented 20 years ago is obsolete. It is inconsistent and counterproductive to the wants and needs of the local property market because it blocks out foreign demand for Thai properties.
Share this Article
 
|
Go here to read the rest:
Mortgage for foreigners? Sorry, not in Thailand
Thailand’s property sector is showing signs of an early recovery, as selective investors return to purchasing real estate stocks and actual property.
Some of the credit goes to a one-year government stimulus package that reduces the Special Business Tax from 3.3% to 0.11%, extends the reduction on transfer taxes from 2% to 0.01% and mortgage registration fees and provides a tax deduction on mortgage principal and interest.
Thailand’s property indicators show:
1.The Stock Exchange of Thailand (SET) index began rebounding in April 2009, and property stocks – while the first to fall in H2/08 – were amongst the first to recover
2. The Bank of Thailand (BoT) has lowered its policy interest rate four times since December 2008, prompting banks to reduce the minimum lending rate (MLR) from 7.25% to 6.25%
3. A continued drop in sales of durable goods due to uncertainty surrounding the economy is highlighted consumer confidence index (CCI) to a historic low of 72.8 in Q1/09 and New housing registrations in Bangkok and surrounding areas fell 43.8% in Q1/09
Many market observers and potential buyers were surprised that housing prices did not go down during the crisis — a reflection of the view that the market felt the situation was only temporary.
First, and unlike Europe or the US, where government subsidies and financial aid are the only things artificially holding up the sector, the kingdom’s housing market benefits from genuine demand, with limited influence from speculators and foreign-based buyers.
But a stable political environment in Thailand would likely see interest rates rise by half a percentage point. And oil prices will float at about US$85 to $95 a barrel. Construction costs will rise when oil prices and interest rates are in an upward trend. Overall housing supply has dropped over the past two years with a decrease in the number of construction permits. Many small-sized developers went bust after failing to access loans from local financial institutions.
