Thailand Plans New Property Initiatives to Stimulate Economy, According to the Ministry

BANGKOK: On Tuesday (Apr 9), Thailand will unveil a set of new initiatives aimed at the property market, as announced by the finance ministry. These steps are part of broader efforts to rejuvenate the economy of Southeast Asia’s second-largest nation.

Deputy Finance Ministers Krisada Chinavicharana and Julapun Amornvivat are scheduled to present details on how these property-related measures will contribute to economic stimulation. The announcement is set for 0730 GMT, following a cabinet session.

In addition to economic stimulus, the briefing will highlight strategies for enhancing Thailand's position as a leading global industrial hub, though specific plans were not disclosed.

Reports from Thai media indicate that the ministry plans to recommend several key proposals, including the reduction of transaction fees for properties valued at up to 7 million baht (approximately US$190,891). This includes slashing the ownership transfer fees from 2% to a mere 0.01%.

Proposed incentives also encompass tax benefits for individuals constructing their own homes and the provision of mortgages for those with lower incomes.

Further adjustments are suggested in the realm of foreign property ownership, with the ministry considering the extension of lease terms to 99 years from the current 30, and opening the door for foreigners to purchase certain types of housing.

Prime Minister Srettha Thavisin underscored the need for substantial economic stimulus on Monday, noting that economic growth for the first quarter of 2024 might have fallen below 1%. This comes after a modest annual growth of 1.7% in the last quarter of the previous year.

Source: Channel News Asia