Another objective is to have easier LTV limitations.
The government should extend property measures and relax loan-to-value ( LTV ) limits for second- and third-time buyers, as domestic demand is expected to remain weak in 2025, according to developers and consultants.
Nuttaphong Kunakornwong, chief executive of SET-listed designer SC Asset Corporation, said damaging elements from last year continue to weigh on local housing need this year.
He said that as financial institutions tighten their mortgage eligibility requirements, “homebuyers with purchasing power are becoming more careful.”
The shift and loan payment cuts from last year helped to increase demand, according to Mr. Nuttaphong, but they expired at the end of 2024.
To raise desire, the methods should become extended this year and apply to all rate parts, he said.
According to Chaiyan Charakarul, chairman of Lalin Property Plc.,” the government may soon extend these measures without delay.”
” The thought process shouldn’t take too long because we are already in the next quarter of the year.”
He said housing transfers in Greater Bangkok last year declined by 7.5 % to 81, 580 units from 88, 206 units in 2023. Compared with 2019, the increases in 2024 was 34.7 %.
Low-rise houses recorded a significant drop of 20.6 %, falling to 33, 956 units from 42, 787 units, while condos increased by 4.9 %, rising to 47, 624 units from 45, 419 units.
However, most condominium exchanges were from presales made two years ago, with desire largely driven by international consumers, said Mr Chaiyan.
Compared with 2019, condo transfers last year declined 35.4 %, while low-rise houses decreased by 33.7 %.
According to Artitaya Kasemlawan, head of residential sales at CBRE Thailand, potential homebuyers had trouble obtaining mortgages, which was a factor in lower sales and transfer volumes last year.
” Even though new launches declined in line with lower sales, unsold inventory has continued to rise each year, particularly in the low-rise housing segment”, she said.
According to CBRE Research, the number of unsold low-rise housing units in Greater Bangkok has increased annually, rising 16 % in 2019, 3.9 % in 2020, 4.8 % in 2021, 5.7 % in 2022, 4.9 % in 2023 and 4.8 % in 2024, tallying 155, 000 units.
With new supply declining to 22, 256 units last year, coupled with a dip expected this year to the lowest level in more than a decade at 18, 000 units, the year-on-year growth in unsold inventory is projected to slow to 2.6 %, reaching 159, 000 units by the end of 2025, said Ms Artitaya.
” An interest rate cut could help significantly, making mortgage payments more affordable for homebuyers, especially if rates drop by as much as 1 %”, she said.
According to Mr. Nuttaphong, lowering LTV restrictions for those purchasing a second or third home might encourage demand in the upper-end market, where buyers frequently purchase additional properties based on their children’s school or new employment.
” The LTV limits are intended to prevent speculation, but now there are no speculators in the residential market”, he said.
The LTV caps should be relaxed for all price ranges because there is excess supply across all price segments, according to the statement” to increase domestic demand and assist homebuyers in obtaining mortgages to complete unit transfers.”