Abstract
The Thai Cabinet approved measures to boost the property sector in 2024, including reducing transfer and mortgage fees and offering tax deductions for home construction. The focus is on stimulating demand from potential buyers within the mid-price range. However, overall market demand is expected to remain sluggish due to factors like household debt and high interest rates. Developers are advised to be cautious in launching new mid-priced projects to avoid oversupply. The property market in 2024 is projected to see a slight decline in demand compared to the previous year.
Summary
Boosting the Property Sector with 2024 Measures
The Cabinet approved measures on April 9, 2024, aimed at boosting the property sector. These measures include a revision of registration fee reduction for ownership and legal transactions related to residential properties, reducing transfer and mortgage fees for properties valued under 7 million baht, individual income tax deductions for home construction, low-interest housing loans, and the promotion of residential projects for low-income earners. These initiatives are part of the Board of Investment housing projects.
Effectiveness of Registration Fee Reduction Measure
SCB EIC predicts that the revision of the registration fee reduction measure for ownership and legal transactions in 2024 will be highly effective in stimulating the property market. This particular measure is expected to attract potential buyers, especially those with existing home-buying plans in the mid-priced segment between 3-7 million baht.
Cautious Approach to New Mid-Priced Projects
Developers are likely to launch new projects in the 3-7 million price range, increasing competition in the mid-priced segment. However, SCB EIC advises caution to avoid oversupply risks. As demand absorbs this year’s measures, developers should carefully consider competition from the resale property market, which remains attractive to buyers.
Source : Keep an eye on the 2024 measures to boost property sector
