Thailand’s economy is projected to grow slightly more than four percent this year, fuelled by the new measures approved on the 9th of April aimed at revitalising the property sector, according to the Ministry of Finance. The government’s strategic move is expected to generate significant economic activity, translating to THB800 billion (USD29.6 billion) in property trades, THB400 billion in investments, and THB120 billion in consumption.
Pornchai Thiraveja, head of the ministry’s fiscal policy office, noted that the stimulus measures would contribute an additional 1.7-1.8 percentage points to the nation’s growth. “With the measures, the economy this year will grow a little over four percent,” Thiraveja stated during a briefing.
The property sector initiatives, approved by the Cabinet, include reduced transaction fees for houses worth up to THB7 million. Ownership transfer fees and mortgage registration fees have been slashed to 0.01 percent, down from two and one percent, respectively. Moreover, the government plans to offer THB30 billion in home loans through state banks, alongside tax breaks for certain property developers and tax deductions of up to THB100,000 for individuals looking to build homes.
The foreign investment in Thailand’s real estate market in 2023 saw a significant uptick. According to the Government Housing Bank’s Real Estate Information Centre (REIC), as reported by The Nation, foreigners spent over THB73.16 billion on 14,449 condominium units, marking a 25 percent increase from the previous year.
REIC Director Wichai attributed this growth to a recovering tourism industry and government policies waiving visa requirements for visitors from China, Kazakhstan, India, and Taiwan. Chinese nationals led the purchases with 6,614 units, followed by Russians, Americans, Myanmarese, and Taiwanese buyers.
