REIC urges govt to stimulate property market

 

   

BANGKOK (NNT) - The Thai economic slowdown in accord with the global economic situation has affected people’s business confidence resulting in a sluggish overall housing market in the first half of the year. In Bangkok and its vicinity, more than one hundred and fifty thousand units remain unsold. Property sales are expected to shrink 5-7 percent this year. The government is being asked to take measures to stimulate purchasing power.

 

Mr Wichai Wiratkaphan, Government Housing Bank (GHB) Inspector and acting director of the Real Estate Information Center (REIC), has asked the government to stimulate buyer interest by trimming transfer fees on properties.

 

In the first half of 2019, property sales continued to decline. If a property stimulus measure is not implemented, the tepid property market will continue throughout the second half, resulting in a 5-7 percent contraction this year, he said. The malaise is set to continue into 2020 with a further five percent continuous contraction.

 

This is mainly due to the domestic and global economic slowdown that makes people less confident to take on long-term debt. The Bank of Thailand’s measures to oversee second house purchases has resulted in a decrease in the number of investment buyers by 20-30 percent and the high value baht has reduced the purchasing power of foreigners in the residential market.

 

An overview of residential projects in Bangkok and its vicinity, in the first half of 2019, reveals more unsold projects compared to the same period last year due to a decrease in the purchase of all types of housing especially townhouses. Total unsold properties amounted to 152,149 units in 1,670 projects, with a combined value of 669.67 billion baht, up by 11.8 percent on the same period last year.

 

-- © Copyright NNT 2019-10-22

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By cutting "transfer-fees"?

 

It's like Thai-Airways banking on "Food-Business to cut losses".????

At the moment the Law for condo owners is 49% farangs 51% Thai's, Thai's get 2 more votes to stay in power. How hard is it to let Farangs have 65% of ownership at 1 vote and Thai's 35% at 2 votes, this would give Thai's 5 more votes and allow Farangs to buy more condos ????? 

Edited October 21, 20196 yr by Laurie Hansen

It seems like everything needs stimulating in Thailand

Casino's ...Take a Kamagra and feel the love...

Edited October 21, 20196 yr by mok199

Buy one get one free.

 

52 minutes ago, Laurie Hansen said:

At the moment the Law for condo owners is 49% farangs 51% Thai's, Thai's get 2 more votes to stay in power. How hard is it to let Farangs have 65% of ownership at 1 vote and Thai's 35% at 2 votes, this would give Thai's 5 more votes and allow Farangs to buy more condos ????? 

Trouble is all the expats would want to take the condo or house home with them when they left Thailand.

They built too many,now they want the Government to help sell them.

regards Worgeordie

18 minutes ago, overherebc said:

Trouble is all the expats would want to take the condo or house home with them when they left Thailand.

What ever they do will be to little to late But any change is better than none

 

Let foreigners own land,job done!

3 hours ago, webfact said:

If a property stimulus measure is not implemented, the tepid property market will continue throughout the second half, resulting in a 5-7 percent contraction this year, he said.

Forgive me if I am wrong, but waiting until basically November to implement anything is kinda leaving it a little late to effect anything isn't it ? 

 

 

10 minutes ago, Thailand said:

Let foreigners own land,job done!

Chinese would buy it all up in about 2 weeks though

7 minutes ago, Thailand said:

Let foreigners own land,job done!

Been said many times. Even if just the Rai your house sits on.

It still put money into the system and it's not money from gov' hand outs that are reported as stimulating the markets. It's not as though there is a shortage of houses for sale.

2 minutes ago, Orton Rd said:

Chinese would buy it all up in about 2 weeks though

Wouldn't be difficult for the gov' to allow only certain nationalities to buy, would it, if you get my gist.

 

There is so so much land in Thailand!. Allowing a long term resident (under marriage) to own a small plot of 120wah to call his home is a decent thing to do. There should be stringent checks and rules to comply to avoid speculation of property.  With such confidence, the foreigner will be most willing to contribute back to the thai society - bringing in business, social work, improve education, etc. Many foreigners have their specialities and their vast experiences can be put to good use to help this beautiful country to move ahead. If there is no ownership, self worth and a stake in this country, how can we bring ourselves to love this country more.

1 hour ago, mok199 said:

Casino's ...Take a Kamagra and feel the love...

You joke but I really fear that the casino card will be be played one day.......And it will be a disaster of epic proportions....

I think there are multiple factors contributing to the decline in sales, the least of which is the transfer fee rate, which is only 2% of the property's value. Regarding the foreign market, maybe making it easier instead of harder for foreigners to stay here might help. Even part-time foreign residents are concerned over the confusing immigration policies. Allowing outright ownership of a home, one purchase only of limited size, would be attractive to potential buyers. Many homes and condos are purchased by Thais, with the sole intent to rent to a foreigner and receive income on their investment. Many Thais I've talked to are aware that foreigners are being scared off by immigration's policies, and that may affect their willingness to invest. And lastly, overdevelopment dilutes the entire market (obviously). There are so many empty houses and condo units, but they just keep building more and more. 

28 minutes ago, nickstav said:

I think there are multiple factors contributing to the decline in sales, the least of which is the transfer fee rate, which is only 2% of the property's value. Regarding the foreign market, maybe making it easier instead of harder for foreigners to stay here might help. Even part-time foreign residents are concerned over the confusing immigration policies. Allowing outright ownership of a home, one purchase only of limited size, would be attractive to potential buyers. Many homes and condos are purchased by Thais, with the sole intent to rent to a foreigner and receive income on their investment. Many Thais I've talked to are aware that foreigners are being scared off by immigration's policies, and that may affect their willingness to invest. And lastly, overdevelopment dilutes the entire market (obviously). There are so many empty houses and condo units, but they just keep building more and more. 

My estimate is that in 5 years every customer will have their own 7/11 to shop in.

2 hours ago, Thailand said:

Let foreigners own land,job done!

Well said.  Thailand's laws in this respect are racist and archaic.  There's a whole scam army of Estate Agents/Lawyers/Auditors urging farang to form a company yet the bottom line is shareholders face jail.  The court always finds in favour of Thais.

Instead of hiring more pretties for stimulating the property market how about free 10 year visas for any property purchasesabove 2 M bht.

It's the same simple minded mentality when they gratis visas. The action has zero bearing on the decision.

 

Transfer fees ??? 60k

Cost of condo 6000000

 

 

7 hours ago, overherebc said:

Been said many times. Even if just the Rai your house sits on.

It still put money into the system and it's not money from gov' hand outs that are reported as stimulating the markets. It's not as though there is a shortage of houses for sale.

I am sure I read somewhere that Americans are allowed to buy land to build a house in Thailand (this was passed as law many years ago due to a stink caused in America). When I read the article in the years since the law was past not one inch of land sale had been granted by any land office in Thailand. Thai are great a agreeing things like trade agreements then ignoring those agreements. 

Edited October 22, 20196 yr by Scot123
Mistake

45 minutes ago, Scot123 said:

I am sure I read somewhere that Americans are allowed to buy land to build a house in Thailand (this was passed as law many years ago due to a stink caused in America). When I read the article in the years since the law was past not one inch of land sale had been granted by any land office in Thailand. Thai are great a agreeing things like trade agreements then ignoring those agreements. 

Probably one of the great mis-understandings tied into the Amity Agreement that americans love stating, while on bar stools,  that they don't need a Thai partner etc to start a company or do anything they want in Thailand.

It can be done easily if they are already a large, and I mean large, company in the USA.

Maybe Trump can have a chat about it when he comes for his visit. ????????????????

Edited October 22, 20196 yr by overherebc

Speaking for myself, my thai wife and I have saved to buy a condo and now have the funds waiting. She sees the ruling thai party as to corrupt to even really want to return to live in Thailand. She has been out of Thailand for 11 years and really has little desire to return to live. I am getting close to retirement , my plan was to retire in Thailand but I am now leaning towards just a winter stay of maybe 4 months so the condo purchase is looking like what I have been told a bad idea to a terrible idea. With the change of visa rules that has also slowed my decision. The exchange rate very little. 

3 minutes ago, thaitot said:

Speaking for myself, my thai wife and I have saved to buy a condo and now have the funds waiting. She sees the ruling thai party as to corrupt to even really want to return to live in Thailand. She has been out of Thailand for 11 years and really has little desire to return to live. I am getting close to retirement , my plan was to retire in Thailand but I am now leaning towards just a winter stay of maybe 4 months so the condo purchase is looking like what I have been told a bad idea to a terrible idea. With the change of visa rules that has also slowed my decision. The exchange rate very little. 

Got a friend who paid 8mil 4 or 5 years ago for a condo. Can't move it now for 6mil.