Thailand Extends Fee Cuts to Bolster Real Estate Sector

Thailand has announced a plan to extend its property transfer and mortgage fee cuts to prop up the real estate market and stimulate the pandemic-hit economy. Property transfer and mortgage fees will remain at 0.01 percent until the end of 2022 for people who trade properties worth no more than 3 million baht (about 90,810 U.S. dollars) and those who get a mortgage of no more than 3 million baht in a single transaction, a government spokesperson said The move, which initially started in 2019 and was scheduled to end on Dec. 31, 2021, includes lowering property transfer fees from 2 percent to 0.01 percent and mortgage fees from 1 percent to 0.01 percent. Published in a royal gazette announcement, the fee cuts on residential buildings will come into effect immediately. The scheme, covering both new and second-hand properties, only applies to Thai nationals. The Ministry of Finance expects the measure to boost property transactions by 291 billion baht (8.79 billion dollars) and lead to a 0.58-percent increase in the country's gross domestic product, local media reported.