Mr. Pornchai Teeravech, Director of the Fiscal Policy Office and spokesperson for the Ministry of Finance, announced that on April 9, 2024, the Cabinet approved economic stimulus measures through the real estate sector and preparations to elevate Thailand to a global industrial city hub (Thailand Vision) to support housing for the public, stimulate the economy through the real estate sector and related businesses, and to prepare for the elevation of Thailand to a global industrial city hub (Thailand Vision). The details can be summarized as follows:

1. Improvement of the Fee Reduction Measures for Registration of Rights and Juridical Acts for Residential Properties in 2024
By reducing the property transfer registration fee from 2% to 0.01% and reducing the mortgage registration fee from 1% to 0.01% only for properties registered for transfer at the same time for the sale of properties, including single-family homes, duplexes, townhouses, commercial buildings, or land with such buildings, or condominiums registered as condominiums with a purchase price and assessed value not exceeding 7 million baht and a mortgage limit not exceeding 7 million baht per contract, excluding cases of selling only parts. This applies to individual buyers who are Thai nationals and will be effective from the date the law is published in the Royal Gazette until December 31, 2024.

2. Personal Income Tax Reduction Measures for Individuals Who Wish to Build a House stipulates that individuals (excluding ordinary partnerships or groups that are not legal entities) can deduct construction wages paid to contractors who are registered VAT operators for payments made under contracts from today (April 9, 2024) until December 31, 2025, with a tax deduction of 10,000 baht for every 1 million baht of actual construction costs, but not exceeding 100,000 baht, specifically for the construction of one house in the tax year in which the house is completed according to the contract that has been made and construction begins from today (April 9, 2024) until December 31, 2025, and stamp duty must be paid through the internet payment system.

3. Happy Home Housing Loan Project with a project budget of 20 billion baht, supported by the Government Housing Bank (GHB), provides loans to low- to middle-income citizens to have their own housing, to purchase land with buildings or condominiums, to build buildings or purchase land with buildings, and to buy equipment or facilities related to living. The fixed interest rate is 3% per year for a period of 5 years, with a maximum loan amount of 3 million baht and a maximum loan term of 40 years. Interested citizens can apply for loans with GHB from today until December 30, 2025, or until GHB fully allocates the project budget.

4. Happy Life Housing Loan Project with a project budget of 10 billion baht, supported by GHB, provides loans for citizens to have their own housing, to purchase land with buildings or condominiums, to build buildings or purchase land with buildings, to extend, expand, or repair buildings, or to redeem mortgages from other financial institutions. The average interest rate for the first 3 years is 2.98% per year, with a loan amount starting from 2.5 million baht. Interested citizens can apply for loans with GHB from today onwards or until GHB fully allocates the project budget.

5. Promotion of Housing Business for Low-Income Individuals (BOI Housing Project) The Board of Investment has issued an announcement No. S. 1/2024 dated March 15, 2024, granting tax benefits to real estate operators by exempting corporate income tax for a period of 3 years on an amount not exceeding 100% of the investment (excluding land costs and working capital) for the construction of housing for low-income individuals according to specified criteria and conditions, such as:

1) The promoted housing must have a usable area of at least 24 square meters for condominiums and at least 70 square meters for single-family homes or townhouses.

2) The promoted housing must be sold only to individuals, with a total construction cost (including land) not exceeding 1.5 million baht.

3) At least 80% of the housing in the project must meet the specified conditions.

4) There must be a plan and design approved by the committee and a construction permit obtained according to the building control laws or related laws.

5) Applications for promotion must be submitted by the last working day of 2025.

Additionally, the spokesperson for the Ministry of Finance stated that the Government Savings Bank also has a project to stimulate the economy through the real estate sector, including: 1) the Government Savings Bank Housing Loan Project for the public with a project budget of 10 billion baht
which supports loans for individuals to purchase land with buildings, condominiums, or to build their own housing. The average interest rate for the first 3 years is 2.95% per year, with the first year interest rate at 1.95%. The maximum loan amount per person is not exceeding 7 million baht, with a maximum loan term of 40 years, and special low monthly payment conditions starting at 2,500 baht per month. Applications can be submitted to the Government Savings Bank from April 17, 2024, until December 30, 2024. 2) The D-HOME loan project for entrepreneurs to stimulate the economy with a project budget of 10 billion baht, supporting loans for entrepreneurs for investment purposes, including land costs, construction costs, public utility development costs, or working capital. The starting interest rate is 3.50% per year, with a maximum loan term of 4 years, and no fees. Applications can be submitted to the Government Savings Bank from April 17, 2024, onwards.

The spokesperson for the Ministry of Finance further stated that these measures will promote home ownership among the public and stimulate the economy through the real estate sector and related businesses throughout the supply chain, promoting domestic investment, which will create jobs, production, and may lead to technology transfer, positively impacting overall economic growth.

However, in addition to the economic stimulus measures through the real estate sector mentioned above, there is also the consideration of reviewing the criteria and laws related to foreign ownership of housing, which is important and related to the Thailand Vision of elevating Thailand to a global industrial city hub aimed at attracting investors and experts related to future industries to invest in Thailand, including adjusting legal processes that hinder property ownership. Therefore, the Cabinet has assigned relevant agencies, such as the Ministry of Justice and the Ministry of Interior, to study the feasibility of implementing these measures and report back to the Cabinet for further consideration.