Cabinet’s approval of a Bt25 billion loan programme for first-time homebuyers with special repayment terms and conditions will help stimulate Thailand’s property market and the mortgage loan business in the rest of this year, according to Kasikorn Research Center KRC.
Under the loan programme, the Government Housing Bank will offer first-time homebuyers a mortgage at zero interest for the first two years if it is less than three million baht, with a full term of 30 years. Homebuyers with less than one million baht annual income can borrow up to one million baht.
Successful applicants are also eligible for a waiver on a mortgage fee at 1 per cent of the loan amount and an ownership transfer fee at 2 per cent of the appraisal price. The Bt25 billion amount is equivalent to 8 per cent of the new mortgage loans extended each year.According to a report by the Land Department and the Real Estate Information Center, property ownership transfers in Bangkok and its environs in the first two months of this year totaled 18,907 units, down 21 per cent from the same period last year.
The decline in property market activities stemmed partly from the lack of property stimulus measures taken earlier.Simultaneously, commercial banks had begun a gradual increase in lending rates with four major banks offering a minimum lending rate at 6.75 per cent. An increase in lending rates by every 1 per cent will have the approved loan amount reduced by 7-8 per cent. That means the purchasing power of homebuyers will decrease accordingly.
Thailand’s economic growth expected to return to 2019 levels in mid-2023
Although the economy would recover next year, the recovery is still substantially below potential level resulting in a large output loss and could affect Thailand’s potential economic growth in the future with the economy expected to return to 2019 levels in mid-2023.
The Siam Commercial Bank (SCB), one of Thailand’s largest commercial banks, said in its latest economic outlook report that the country’s economy may wait until the second semester of 2023 to return to 2019 growth levels.(more…)
S&P maintains Thailand’s credit rating at BBB+ with stable outlook
Standard and Poor’s (S&P) maintained Thailand’s credit rating at BBB+ . The global rating firm expects the country’s gross domestic product (GDP) to grow at 1.1% this year, with a more optimistic growth at 3.6% per year from 2022 to 2024.
Standard and Poor’s (S&P) maintained Thailand’s credit rating at BBB+ . The global rating firm expects the country’s gross domestic product (GDP) to grow at 1.1% this year, with a more optimistic growth at 3.6% per year from 2022 to 2024.(more…)
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