Developers Suggest Stable Flow of Financial Measures
The government should continue using measures to motivate the financial system, loosen up a few rules that avert real estate growth and determine non-performing loans (NPLs) among low-income earners, property experts recommends. The most recent measure permitting home purchasers to remove 300,000 baht of mortgage principal from taxable income has by now lifted customer sentiment in certain segments.
For example, Property Perfect Plc doubled its sales in the last half of January, recording total sales of 450 million baht in the month, 30 million over that a year ago.
Assoc Prof Manop Bongsadadt, a property expert and lecturer at Chulalongkorn University, said government measures should help develop the financial system by the second quarter of 2009.
Any extra property measures should concentrate on low-income earners as they presently are not getting many paybacks, he said.
Dr Manop added there should be preset low interest rates with longer terms. The government should also expand the leasehold period to over 30 years as residential prices for leasehold units would reduce, helping lower-income earners in addition to the market for foreign purchasers.
Chainid Ngowsirimanee, managing director of Property Perfect, said the government should have other measures to encourage the financial system, particularly the tourism industry as its contributions multiply to the entire economy.
“Low interest rates should help improve the property market. The Government Housing Bank's capital should be elevated,” he recommended.
Mr Chainid said that the government should also decrease or cancel the 30% downpayment necessity for residences priced more than 10 million baht to stimulate the upper end of the market.
He said property prices would bottom out by the middle of 2009.
Khan Prachuabmoh, the GH Bank president, said the Bank of Thailand's standard interest rate should go down to lower than 2% by June as rates in other countries are by now at rock bottom.
Mr Manop recommended developers deal with their cashflow better at the same time as small firms should look for partners or joint investments with leading developers.
For example, Property Perfect Plc doubled its sales in the last half of January, recording total sales of 450 million baht in the month, 30 million over that a year ago.
Assoc Prof Manop Bongsadadt, a property expert and lecturer at Chulalongkorn University, said government measures should help develop the financial system by the second quarter of 2009.
Any extra property measures should concentrate on low-income earners as they presently are not getting many paybacks, he said.
Dr Manop added there should be preset low interest rates with longer terms. The government should also expand the leasehold period to over 30 years as residential prices for leasehold units would reduce, helping lower-income earners in addition to the market for foreign purchasers.
Chainid Ngowsirimanee, managing director of Property Perfect, said the government should have other measures to encourage the financial system, particularly the tourism industry as its contributions multiply to the entire economy.
“Low interest rates should help improve the property market. The Government Housing Bank's capital should be elevated,” he recommended.
Mr Chainid said that the government should also decrease or cancel the 30% downpayment necessity for residences priced more than 10 million baht to stimulate the upper end of the market.
He said property prices would bottom out by the middle of 2009.
Khan Prachuabmoh, the GH Bank president, said the Bank of Thailand's standard interest rate should go down to lower than 2% by June as rates in other countries are by now at rock bottom.
Mr Manop recommended developers deal with their cashflow better at the same time as small firms should look for partners or joint investments with leading developers.
Labels: non performing loans, property expert, real estate growth
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