Significant Fee Reduction Approved
In a landmark decision, the Cabinet has approved a proposal to drastically reduce ownership transfer and mortgage fees for residential properties to a mere 0.01%. This significant cut, down from the previous 2% for transfer fees and 1% for mortgage fees, is set to alleviate the financial strain on homebuyers and aid property developers in clearing unsold inventory. The new rates are effective immediately upon publication in the Royal Gazette and will remain until mid-2026.
Eligibility and Impact
The fee reduction applies to a wide range of property types, including single-detached houses, twin houses, townhouses, shophouses, land with such buildings, and condominium units, provided the price does not exceed 7 million baht. This move is directly aimed at stimulating demand in the property market, addressing the high volume of unsold units.
Synergy with LTV Regulations
Complementing the Bank of Thailand's recent relaxation of loan-to-value (LTV) rules, which now permits 100% financing of collateral value, this fee reduction is expected to significantly invigorate the property market. Historical data suggests such measures have previously enhanced market accessibility and sales, promising a positive outlook for the sector.
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