Economic growth projections driven by the property sector
The Ministry of Finance in Thailand has forecasted that the country’s economy will grow by slightly over four percent this year with the help of new measures aimed at stimulating the property sector. These measures are expected to generate ฿ 29.6 billion ($851.89 million) in property trades, an additional ฿ 400 billion ($11.51 billion) in investments, and an extra ฿ 120 billion ($3.45 billion) in consumption.
According to Pornchai Thiraveja, head of the ministry’s fiscal policy office, the stimulus measures will contribute an additional 1.7-1.8 percentage points to the nation’s growth. This optimistic outlook highlights the government’s strategic focus on the property market as a key economic recovery and growth driver.
Stimulus measures to boost the Thai property sector
The Thai Cabinet has approved a series of initiatives aimed at boosting the property sector. Notable measures include reduced transaction fees for houses valued at up to ฿ 7 million ($201,460). Ownership transfer fees and mortgage registration fees have been lowered to 0.01%, down from 2 and 1%, respectively. In addition, the government plans to provide ฿ 30 billion ($863.4 million) in home loans through state banks and offer tax breaks for certain property developers. These steps aim to make property ownership more accessible, increase market activity, and attract both domestic and international buyers.
Easing rules on foreign ownership
In order to attract more foreign investment, the Thai government is considering easing rules on foreign ownership of property. Deputy Finance Minister Krisada Chinavicharana emphasized that relevant agencies have been instructed to explore relaxing these regulations. Additionally, the ministry intends to ask the central bank to relax loan-to-value (LTV) rules, a move supported by Prime Minister Srettha Thavisin. These potential changes could make it easier for foreigners to invest in Thai real estate, enhancing the market’s appeal and potentially increasing property values.
In 2023, foreign investment in Thailand’s real estate market significantly increased by 25% compared to the previous year. According to the Government Housing Bank’s Real Estate Information Centre (REIC), foreigners spent over ฿ 73.16 billion ($2.11 billion) on 14,449 condominium units. This surge was driven by a recovering tourism industry and government policies waiving visa requirements for visitors from countries such as China, Kazakhstan, India, and Taiwan. Chinese nationals led the purchases, followed by Russians, Americans, Myanmarese, and Taiwanese buyers. This trend indicates growing confidence in Thailand’s real estate market among international investors.
Thailand’s real estate market is poised for robust growth, supported by government initiatives to stimulate the sector and ease foreign investment regulations. These developments present numerous opportunities for foreign property buyers and owners in a market that is projected for dynamic and resilient growth.
