Property tax cut beefs up supply

Property tax cut beefs up supply

Supplies of second-hand homes rise in Q2

An extension of the property tax cut on transfer and mortgage fees this year, which includes second-hand homes, increased the housing supply offered in the market in the second quarter.

Vichai Virakapan, acting director-general of the Real Estate Information Center (REIC), said the number of second-hand homes nationwide offered for sale in the second quarter of the year totalled 162,716 units per month on average, worth a combined 996 billion baht.

"The monthly average and value in the second quarter were the largest since the first quarter of 2021," he said. "The figures grew by 18% from the first quarter. The increase was seen almost across the board."

The largest category for second-hand homes listed for sale was single detached houses at 64,392 units, followed by condos (49,250 units) and townhouses (42,626 units), according to the REIC.

The biggest quarter-on-quarter increase was for condos at 21%, followed by shophouses, which grew 20%. The growth of townhouses, single detached houses and duplex houses was 17%, 16.6% and 1.9%, respectively.

The range of prices in the second quarter with the largest quarterly increase comprised units priced below 1 million baht, up 56%, followed by those priced 1.01-1.5 million baht (17.7%) and 1.51-2 million baht (14.3%), said the centre.

"This finding suggests second-hand homes with prices below 3 million baht listed for sale in the second quarter made up the largest group, likely driven by the property tax incentives that started to cover second-hand homes from Jan 18, 2022," said Mr Vichai.

The property tax incentives, offering a cut of transfer and mortgage fees from 2% and 1%, respectively, to 0.01%, run until Dec 31, 2022.

The largest segment for sale in the second quarter was homes priced below 1 million baht, followed by 3.01-5 million baht and 2.01-3 million baht, respectively.

REIC compiled the second-hand homes nationwide listed for sale through private sector websites and those owing mortgages to the financial sector, state-owned banks, asset management companies and the Legal Execution Department since the first quarter of 2021.

By province, the top 10 comprised Bangkok (representing 38.6% by unit number and 62.2% by value), Nonthaburi, Samut Prakan, Phuket, Chon Buri, Surat Thani, Pathum Thani, Chiang Mai, Prachuap Khiri Khan and Nakhon Ratchasima. The largest quarterly hike in volume was Chon Buri at 20.6%, followed by Samut Prakan (9.3%) and Bangkok (6.6%).



Do you like the content of this article?
COMMENT (1)

Asian markets, crude drop on China protests

Stocks and oil prices sank Monday on concerns about protests across China calling for political freedoms and an end to the government's hardline zero-Covid policy, fuelling uncertainty in the world's number-two economy.

14:53

Singapore government faces parliament grilling over FTX fallout

Singapore’s government faces increased scrutiny over the fallout from the collapse of Sam Bankman-Fried’s FTX crypto empire.

14:38

2kg garbage in dead sea turtle

More than two kilogrammes of garbage have been found inside a sea turtle found dead on a beach in Chon Buri province.

13:48