Struggling Market Seeks Government Intervention

In a unified move, seven major Thai real-estate associations have proposed a series of stimulus measures to the government and the Bank of Thailand (BOT) aimed at rejuvenating the stagnant property market. Despite an expected economic growth of 2.3-3.3% in 2025, the real-estate sector continues to face challenges due to economic pressures, low consumer confidence, and high household debt.

Proposed Measures to Stimulate the Economy

The associations, including the Housing Business Association and the Thai Condominium Association, are advocating for several key initiatives. These include extending tax incentives, reducing land and building taxes, introducing low-interest loan schemes, and reforming land allocation policies to make housing more affordable. Additionally, they are urging the BOT to temporarily suspend loan-to-value (LTV) ratios for housing loans to boost demand.

Challenges and Solutions

Prasert Taedullayasatit, president of the Thai Condominium Association, highlighted the ongoing difficulties in the sector, including a significant decline in sales and ownership transfers. He emphasized the importance of reducing transfer and mortgage fees and suspending LTV restrictions to stimulate market recovery. Furthermore, he called for a reduction in policy and real interest rates to encourage investment and economic growth.

The real-estate associations are calling on the government to implement measures that will enhance consumer confidence and stimulate economic activity, such as continuing the 10,000-baht handout program and expanding affordable public transportation options.