The Home Builders Association has revealed that the average annual value of self-built homes across the country reaches 120 billion baht. They remain confident that there is potential for positive growth, asserting that the Bank of Thailand's measures do not impact the self-built home market, as the asset values are high and there is no bad debt.

          Ms. Siriporn Singharun, President of the Home Builders Association, shared insights on the current self-built home market, noting continuous growth each year, particularly in the Bangkok metropolitan area, where approximately 20,000 homes are constructed annually. Nationwide, it is estimated that around 40,000 homes are self-built each year. Based on an average price of 3 million baht, this results in a total annual value of approximately 120 billion baht for self-built homes. Nevertheless, the association still anticipates a positive growth trend for the home construction market this year.

          Regarding the Bank of Thailand's new regulations on housing loans, which set minimum down payments or loan-to-value (LTV) ratios, it is believed that these will not directly affect the home construction business. This is because these constructions are for personal residence on one's own land, not for speculative purposes. Additionally, loans are secured against both the land and the home being built, allowing for 100% financing for the home and an additional 30% for related expenses, which does not exceed 80% of the total asset value. Historically, borrowers for self-built homes have not encountered bad debt.

          In recent times, the government has continued to implement measures to stimulate the real estate business. However, the market for building homes on one's own land is treated as real estate, and the government does not separate this data for analysis, leading to ineffective solutions that create problems for consumers and related businesses. Those building homes on their own land have not benefited from measures aimed at supporting the real estate sector.

          Therefore, the association proposes to government agencies that any new measures should specifically exempt those building homes on their own land for personal residence, not for sale. Furthermore, data on self-built homes should be separated from the broader real estate category and used as an economic indicator. At the same time, the government should take the lead in providing and allocating vacant land to make it easier for citizens to build homes.

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