Developers demand urgent measures

Dismal real estate market needs help

- WICHIT CHANTANUSORNSIRI

Real estate developers have reiterated their calls for the government to expedite financial and tax relief measures, noting the sector is on track to record its lowest growth in two decades.

According to Issara Boonyoung, chairman of the real estate development committee of the Thai Chamber of Commerce, all key indicators in the real estate market this year are at their lowest levels in several years.

For example, the number of newly launched projects is the lowest in 20 years, and the number of property transfers is the lowest in a decade. Meanwhile, mortgages are at their lowest level in 8-9 years.

He said important measures currently supporting the real estate sector are the Bank of Thailand's relaxation of loan-to-value rules and the temporary reduction of mortgage registration and transfer fees, slashed to 0.01% from the normal rates of 1% and 2%, respectively.

However, these measures are scheduled to expire in June next year.

The private sector is concerned this period will coincide with the transition to a new government, which may cause delays in extending these measures, said Mr Issara. Therefore, developers would like the current government to expedite the extension.