Developers Advise the Government to Increase Tax Allowances For Home Purchasers

Property developers have called on the new government to raise the tax allowance for home purchasers from Bt100,000-Bt200,000, as a means of straightforwardly growing purchasing power in 2009, at a time when customers will be hit by the global economic recession.

They also asked the government to expand long leases for foreign purchasers from 30 years to 60 or even 90 years, as a way to improve purchasing power in that section of the market.

Nobel Development managing director Thongchai Busrapan said the most successful measure that would straightforwardly do good to home purchasers would be escalating the tax allowance for those purchasing into housing projects for their first home. They put forward the existing allowance be doubled from Bt100,000-Bt200,000, which would boost their purchasing power.

“The tax allowance of value Bt100,000 has focused on purchasers of apartments valued at approximately Bt1.5 million. If the allowance is elevated to Bt200,000, that would develop the market for those purchasing more expensive apartments,” he said.

Prasert Taedullsatit, director and chief operating officer of Preuksa Real Estate, said that if the government improved the tax allowance for down payments in the first six months of 2009, it would be a reception boost for the market.

Demand for housing projects this quarter has minimized by over half from the same period in 2008. This tendency is likely to carry on until the first half of 2009. Thus, Preuksa called on the government to launch provisional measures to improve the market in the coming six months, he said.

“In case the government supports these proposals, it would honestly boost purchasing power,” he said.

“If the property market can get better, it will also assist linked businesses to develop. That sequentially would facilitate the economy endure the global financial slump,” he added.