According to seven real estate organizations including the Real Estate Trade Association, Design and Construction Committee, the Thai Chamber of Commerce, the Housing Business Association, the Thai Condominium Association, the Thai Real Estate Association, the Home Builder Association, the Real Estate Marketing Association, and the Thai Real Estate Broker Association have submitted a letter to the Prime Minister and the Minister of Finance, along with correspondence to relevant agencies, urging the government to implement measures to drive the country's economy through the real estate sector while the overall economy is still recovering weakly.

All seven organizations would like to express their gratitude to the Cabinet and relevant agencies for the Cabinet's resolution and the actions taken by various agencies as follows:

1. Measures to reduce transfer fees and mortgage fees for residential purchases from a price level not exceeding 3 million baht to a level not exceeding 7 million baht and to adjust the transfer fee from 1% to 0.01%. Buyers of residential properties will directly benefit from the reduced transfer fees, which will not only stimulate the real estate sector but also positively impact various related businesses, including construction materials, labor hiring, furniture and decoration materials, electrical appliances, and the use of utilities such as electricity and water. This will also support financial institutions in restructuring debts by making it easier to sell properties that serve as collateral.

Although these measures may seem like short-term economic stimuli, they are necessary while the overall economy remains sluggish.

2. Measures to allow construction costs for homes to be deducted from personal income tax at 10,000 baht per million, up to a total of 100,000 baht. This not only encourages citizens to build homes on their own land but also allows the government to collect more taxes from the 7% VAT on construction materials. Home builders will also need to pay personal or corporate income tax of 20% (depending on the case).

Additionally, this incentivizes home construction businesses, whether individuals or corporations, to enter the tax system more, as those hiring builders will pressure them to formalize contracts to receive personal income tax deductions.

3. Measures to expand the home loan limit from 1.5 million baht to 3 million baht at an interest rate not exceeding 3%. This is highly beneficial for low- and middle-income earners seeking to purchase homes, as it makes it easier to apply for loans and reduces the rejection rate from financial institutions. The lower interest rates will decrease monthly payments, benefiting this group that urgently needs housing, thus providing both economic and social advantages.

4. Promoting the construction of housing for low- and middle-income earners using the criteria set by the Board of Investment (BOI) for housing priced at no more than 1.5 million baht. This measure will significantly encourage the private sector to participate in creating housing for low- and middle-income earners nationwide, allowing those looking to buy homes priced at no more than 1.5 million baht to choose properties in desired locations and price ranges. Furthermore, it alleviates the burden on state agencies that require budget support for constructing housing for low- and middle-income earners.

5. Extending lease periods beyond 30 years and designating leases as real rights. The private sector believes this is crucial for establishing long-term housing and land use structures in the country, as Thailand promotes investment and tourism. Thus, the need for security regarding lease rights must follow. Simultaneously, extending lease periods benefits Thai tenants as well, especially since much urban land is owned by state agencies or private entities unwilling to sell for development but intended for lease. Extending lease periods beyond 30 years and granting lease rights will provide security for obtaining loans from financial institutions and facilitate operations on leased properties throughout the contract duration, while also addressing illegal property holdings by foreigners.

6. Reducing the minimum land size in subdivision projects, such as single-family homes from a minimum of 50 square wah to 35 square wah, twin houses from a minimum of 35 square wah to 28 square wah, and row houses or commercial buildings from a minimum of 16 square wah to 14 square wah. Reducing the minimum land size in subdivision projects aligns with economic conditions and smaller family sizes, increasing households' purchasing power for housing and facilitating loan approvals from financial institutions due to lower price levels. The Central Land Allocation Committee has already approved this principle on March 21, 2024.

Over the past several years, the country's economic growth has consistently been low. All seven real estate organizations believe that the Cabinet's resolution and the actions of relevant agencies will stimulate numerous industries related to real estate and financial institutions. Furthermore, it will transform the structure of housing and land use in the country in the long term, positively impacting business confidence and investment sectors, as well as household confidence, which will drive the overall economy forward.