The Real Estate Information Centre of Thailand has estimated that the housing market, especially in Bangkok and vicinities this year will not be as lively as last year but will not shrink much.
Real Estate Information Centre Executive Director Samma Kitsin admitted that there was no policy from the Thai government to support the housing market in the first four months this year while the 0% interest rate for the first house purchase will be effective in the latter half of the year.
Mr Samma added that a number of house buyers have postponed their decision since they want to see how the new government will support the market as many political parties are campaigning several policies regarding the housing sector.
Regarding new property projects this year, the director indicated that there are several new projects expanding in suburban areas of Bangkok as city center areas are getting congested. He said a number of them are mushrooming along the sky train and underground lines.
25 billion baht for loans for first-time home-buyers
The Thai government approved earlier this year a proposal that the Government Housing Bank (GHB) make available 25 billion baht for loans for first-time homebuyers.
The bank will offer first-time homebuyers a mortgage loan 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.
The projected is aim at helping low and medium income earners at a time when interests rates are rising and the cost of living increasing. The government will compensate the bank for the interest loss, at 450-500 million baht.
Mr Samma then elaborated 50% of the respondents answering a recent survey of the centre believed that the housing market this year will be stable while 30% were optimistic it will improve; however, the rest think the situation will be worse.
Presales to slightly decline in 2011
The combined presales of 14 large listed developers will decline by 2-3% this year after jumping 38% last year as housing products shift more towards low-rise units and away from condominiums, a property seminar heard yesterday.
Therdsak Thaveeteeratham, a senior vice-president of Asia Plus Securities, told the seminar, held by the Real Estate Information Center, that the developers would see their combined presales decline by 2-3% from last year’s 173 billion baht as supply begins to focus on detached houses and townhouses.
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