On February 24, 2019, Mr. Wit Kunthanaweepas, CEO of Capital One Real Estate Co., Ltd., revealed that in 2019, the real estate market is expected to expand positively, driven by clarity in the election process. Political stability is crucial for the overall economy, leading to increased investor confidence. If the new government continues with mega projects such as the Eastern Economic Corridor development or the electric train project, it will significantly impact the real estate market, leading to further expansion.


          “We hope the new government will improve policies related to the real estate sector, addressing various aspects concerning businesses, homebuyers, and foreign clients. For Thai customers, there should be incentives to encourage home purchases as assets, especially for those currently renting. This would help stimulate economic growth, such as allowing full tax deductions on housing loan interest, as interest is an incurred expense. Previously, only 100,000 baht could be deducted. This measure would encourage home buying and prompt renters to consider purchasing their own homes,” Mr. Wit stated.




          Currently, evaluating customers applying for home loans faces challenges due to the requirement for credit checks through the National Credit Bureau. Each financial institution has different methods for checking customer histories. The credit bureau acts as a central agency providing credit information, rather than banks conducting their own assessments based on their credit scoring.


          Mr. Thatri Nuchswat, Managing Director of T Group Asset Co., Ltd., mentioned that this year, we will see real estate developers working to clear their stock to boost sales. However, the market has been sluggish due to strict policies on housing loan approvals from commercial banks, resulting in many customers being denied. This directly impacts the real estate sector, especially for medium and small-sized developers, as some banks have announced policies not to consider housing loans in provincial areas.


          Nevertheless, we would like to propose that the new government improve policies regarding the real estate sector to support Thai homebuyers. There should be measures to lower housing loan interest rates and relax strict housing loan policies, as well as tax and fee reductions for property purchases. This year, real estate sales may decline, particularly in the condominium sector, but there will be an increase in sales from the real demand segment, as economic conditions have caused investors to delay their investments.

 

Thank you for the information from www.thaipost.net