5 gurus point out that the real estate market in 2025 is still risky, urging Paethongtarn and the BOT to continuously inject stimulus medicine

The real estate crisis in 2024 is a lesson that entrepreneurs must adapt to and cope with situations that may occur in 2025, both domestic and global economies are volatile, unexpected events, Kasikorn Research Center predicts GDP in 2025 to grow by 2.9%, which is only a slight expansion from the previous year. The major problem that entrepreneurs agreed on last year was "able to sell but unable to transfer", reflecting household debt, financial institutions' variables are strict on loans, and this year is the same. When looking at the houses waiting to be sold or stock carried forward, this year, data from the Real Estate Information Center (REIC) in the third quarter of 2024, Bangkok And the surrounding areas found that there were as many as 215,800 units left for sale, an increase of 10.2%, worth 1,313,487 million baht, an increase of 27.3%, with an increase in all price levels compared to the same period last year.

It is expected that it will take 49 months to sell, which the real estate stimulus measures, reducing the transfer fee and mortgage registration to 0.01%, which has increased the ceiling price of new and second-hand houses to no more than 7 million baht, found that the price range group below 7.50 million baht, both houses and condominiums, has a downward trend. Therefore, it is believed that such measures are necessary, but currently, some economic stimulus measures through the real estate sector during the economic government have expired, such as the measure to reduce the transfer fee and mortgage registration. Recently, 7 real estate associations are preparing to propose another round of real estate stimulus measures to support purchasing power to return.

"Thansettakij" interviewed 5 real estate business gurus about the proposals, reasons for necessity, and economic direction of this year to Ms. Paethongtarn Shinawatra, Prime Minister and Governor of the Bank of Thailand, for consideration within this January. 4 points to stimulate purchasing power were proposed.

Starting with Mr. Issara Boonyang, Chairman of the Real Estate, Design and Construction Association of the Thai Chamber of Commerce, who revealed that the measure to reduce transfer and mortgage fees is necessary. He believes that the economic situation has not yet recovered. Various costs from internal and external factors have not decreased. There should be continuous measures to stimulate the real estate market.

For the measures proposed to the Prime Minister, there are 4 points: 1. Extend the measure to reduce transfer and mortgage fees to 0.01% 2. Support low interest rates, making it easier to apply for loans for those who are ready 3. Reduce the burden of land and building taxes in 2025 by 50% until the economy recovers well 4. Reduce the size of land allocated to give people the opportunity to live in the city. As for other measures such as the tax deduction for house construction "ten thousand per million", the measure has not expired yet, as well as the amendment of the condominium law that allows foreigners to own 75% of the property. The government has studied and listened to opinions and weighed them. While renting land for 99 years, the government has a policy for a housing project for Thais using the property rights law that is already in operation for the LTV (Loan to Value Ratio) measure or the ratio that banks can provide loans for compared to the price of the house purchased. This will be submitted to the Bank of Thailand (BOT) again for review or temporary cancellation, so that those who need to buy a second home, located near their workplace, can borrow 100%, equivalent to their first home. Reduce land tax by 50% - no extension of transfer and mortgage registration. Real estate in a coma!

In line with Mr. Athip Pichanon, Honorary President of the Housing Business Association, who stated that the real estate market still has risk factors. Therefore, economic stimulus measures through the real estate sector must be continuous, especially the extension of the measure to reduce transfer and mortgage fees, which is hoped to be extended. If it is not continued, it is believed that the real estate market will be more comatose than last year. At the same time, what is seen as necessary and has been continuously pushed is the reduction of land and building tax to 50% because the economy is slowing down. If the full 100% is collected, it will affect the people and cause tax arrears.

Real estate in 2024 is the lowest, expected to recover well in 2026 from the injection measures.

Similarly, Mr. Sunthorn Sthaporn, President of the Housing Business Association, said that within this January, the association plans to propose an extension of the measure to reduce transfer and mortgage fees to create continuity. Last year's real estate market was at its lowest in 10 years and 2025 began to recover. It is expected that 2026 will recover to normal levels due to the government's measures, including the "You Fight, We Help" debt relief project, etc., the GH Bank's 120 billion baht low-interest loan measure, as well as new measures that will help people and SMEs reduce their debt burden and allow them to apply for new loans. The association will push for a reduction in transfer fees and mortgages and reduce LTV for those who need a second home.

Mr. Pornnarit Chuanchaisit, President of the Thai Real Estate Association, stated that the association is proposing an extension of the reduction in transfer fees and mortgages. In addition, the Bank of Thailand (BOT) would like to relax the LTV measure so that people who need to buy a second home near their workplace or educational institution can borrow 100% like their first home. Temporary LTV cancellation - support for low interest rates for lending

Mr. Prasert Taedulyasatit, President of the Thai Condominium Association, stated that the association is preparing to propose real estate stimulus measures to the government, which include: Extend the measure to reduce transfer and mortgage fees, financial institutions support low-interest loans and provide loans based on facts, including proposing the new chairman of the Bank of Thailand and the governor of the Bank of Thailand to review or temporarily cancel the LTV to stimulate purchasing power to return.

In this regard, real estate is one of the important engines that every government uses to drive the country's economy, and I believe that no one wants to see this engine go out!!!