Motion to extend property support measures
Hint provides hope to property sector
Finance Minister Arkhom Termpittayapaisith has signalled the possible extension of the property support measures to help spur the recovery of the sector.
The measures due to expire this year include a 100% loan-to-value ratio and some fee reductions to help boost activities in the real estate sector.
The ministry will discuss with related state agencies whether these measures should be extended, Mr Arkhom said at a seminar on the property market hosted by Thansettakij newspaper on Monday.
He will also talk with the Bank of Thailand (BoT) on how to prevent interest rate hikes adding huge burden to homebuyers.
Commercial banks have indicated that higher interest rates are planned for mortgages and auto loans in response to rising financial costs and imminent policy rate hikes.
The central bank is expected to raise its policy rate from the current 0.50% in the second half to tame persistently high inflation.
State-run banks earlier said they would try keeping their rates steady as long as they can in order to prevent adding burden to their customers following the central bank's rate hike.
Earlier Government Housing Bank (GH Bank) president Chatchai Sirilai said GH Bank's current average interest rate is 3%.
If the BoT raises the benchmark rate by 0.25% in August, GH Bank would not immediately follow suit but would do so in October and only by 0.15%.
Mr Arkhom said the property sector accounts for 9% of GDP, while the export sector contributes 60% and the tourism sector 12%.
He added that the growth in the property sector will also benefit related sectors, including construction, electric appliances and other devices. However, property developers should also consider if the market is in oversupply.
In a separate matter, deputy comptroller-general Waree Wankeaw said the state budget disbursement as of the third quarter of fiscal 2022 was 2.26 trillion baht or 73% of the total expense budget of 3.1 trillion baht.
Of total, the disbursement of the investment budget is 296 billion baht, representing 49% of the total investment budget. The disbursement of annual expense is 1.97 trillion baht, accounting for 79% of the total expense, Ms Waree added.