Developers seek a higher ceiling price for houses

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Developers seek a higher ceiling price for houses

Change needed in eastern provinces

The ceiling price for homes under the government’s mortgage program should be higher to help both local buyers and the real estate market in the eastern provinces, while foreign ownership quotas for condos should be higher to help both local buyers and the real estate market in the eastern provinces. be increased to stimulate foreign demand.

Meesak Chunharuckchot, chairman of the Chonburi Real Estate Association, said the price ceiling of 1.2 million baht for housing eligible for low-interest mortgages from the Government Housing Bank as part of the stimulus package of 1 million units was too low.

“In the EEC, there are no houses priced at or below 1.2 million baht. Most of them are between 1.5 and 1.8 million baht. The price program cap should be 1.8 million baht, ”he said.

Homeownership incentives, such as a deduction of transfer fees and mortgage fees of 2% and 1% to 0.01% each for a residential unit priced at no more than 3 million baht, should also be revised. to 5 million baht maximum.

The higher price caps for both programs can help homebuyers reduce interest and borrowing costs and absorb existing supply.

The special business tax for real estate transactions is expected to be reduced from 3.3% to 0.1% of property value to help developers during the pandemic crisis.

“The stricter mortgage lending rules of financial institutions should be relaxed as they are currently having a strong impact on homebuyers and are plunging the economy into deep contraction,” he said.

He also suggested that the government provide inexpensive Covid-19 antigen test kits to isolate workers infected earlier and let construction sites get on with their work.

“Despite an overall real estate slowdown, some projects in certain price ranges are seeing good sell rates. There should be no more closures at construction worker camps as frozen construction work will impact important.”

To avoid a labor shortage, some rules regarding foreign workers should be changed, such as inconsistent social security rules, work permits and some prohibited professions, as many foreign workers have returned to their home countries. ‘origin and might not return.

In the future, the real estate market in the EEC provinces may not be as robust as in the past due to the contraction of certain industrial exports.

“Foreign ownership quotas for condos should be above 49% to stimulate the real estate market,” he said.

“We should promote a long stay policy among overseas buyers by connecting their medical well-being to the Thai health system so that they don’t have to spend their money while receiving services from a hospital in Thailand.”

Mr Meesak said that the development of infrastructure in the EEC, such as the high-speed train connecting three airports and the airfield which consists of U-tapao airport and Laem Chabang port, will take a long time to create. an economic impact.

“It is only in 2023 that all the projects will be completed. A concrete benefit for the real estate sector will emerge from 2025”, he added.

Vichai Viratkapan, acting managing director of the Real Estate Information Center, said the condominium market in the three eastern provinces will recover next year.

“The absorption rate improved as the new supply decreased, while the sell rate was stable,” he said. “With more balanced supply and demand, the market will gradually pick up next year.”

In the first half of the year, the overall EEC residential market saw a sharp drop in the newly launched supply with just 5,752 units, down 17% from the same period last year, with a combined value of 14 , 22 billion baht, down 35%.

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