The GHB zero interest campaign would help buyers afford units for under THB3 million at developments like Pruksa’s Plum Condos.
Thailand’s Government Housing Bank (GHB) is considering launching a campaign offering zero per cent interest rate loans for the first two years for people buying a home under THB3 million (US$100,200).
“The Finance Ministry has asked for a way to help middle and low income brackets buy residences with lower cost by offer a soft loan of THB50 billion (US$.167 billion) for this campaign,” a source from GHB told The Nation.
The bank now is finding the best conditions for homebuyers and plans to launch the campaign on May 1, 2011, the source said. Currently, residential home sales of units under THB3 million cover between 40 per cent and 45 per cent of the Thai market for a total value about THB250 billion (US$8.35 billion) a year.
Development firms would welcome the campaign because it will boost the property market at a time when interest rates are rising.
Pruksa Real Estate Plc’s director and chief business officer Prasert Taedullayasatit said that GHB campaign would improve the market because lower to middle income buyers will cut about 6 to 7 per cent of their costs in buying a residence for the first two years.
“If the GHB finally this campaign, that will be the tool to drive the market at the time of property market slightly growth in this year,” said Asian Property Development Plc’s chief financial officer Pumipat Sinacharoen.
The Bangkok residential market recorded THB36.7 billion in sales in the first two months of this year, down 27 per cent from THB50.1 billion in the same period last year, according to research by the Real Estate Information Centre.
Source: Asia Property Report