Developers prep schemes to entice homebuyers
The possible extension of property incentives and the easing of the loan-to-value (LTV) ratio for another year to the end of 2023 will have a minimal impact on the market in the second half as developers try to prompt homebuyers with campaigns.
Surachet Kongcheep, managing director of consultancy Property DNA Co, said homebuyers typically delay purchases when they learn government incentives might be extended.
"If homebuyers want to delay their decisions after an extension of incentives is announced, developers will definitely offer campaigns to nudge them to take unit transfers because they want to record revenue for the period," he said.
Last Friday, Finance Minister Arkhom Termpittayapaisith said the government plans to extend the property incentives for a year to help sustain the property sector and the overall economy.
The measures due to expire on Dec 31 include a reduction of transfer and mortgage fees from 2% and 1%, respectively, to 0.01% each, and a 100% LTV ratio.
Mr Surachet said many homebuyers were unable to receive unit transfers during the pandemic for several reasons, including high household debt, decreasing income or job loss.
"The tourism sector might resume after full reopening, but a recovery did not occur in all destinations," he said. "Housing demand for tourism employees will take another year to revive."
As many potential homebuyers could not obtain a mortgage, residential developer Pruksa Real Estate Plc launched "Pruksa Pass" campaign for its ready-to-transfer condo units priced between 1.39-3 million baht a unit.
"The campaign is a financial solution to help customers whose purchasing power is limited and who are unable to receive a mortgage loan approval," said Pakarin Dattibongs, Pruksa's managing director for condominiums.
Customers approved by Pruksa can move into units and pay a monthly instalment directly to the company for the first 1-3 years. During this period, customers can prepare for a mortgage using Pruksa's advice.
"If customers get a home loan from a bank, they can receive a unit transfer. The instalment paid to us serves as a discount deducted from the mortgage credit line," he said.
- home buying