Politics and Property in Thailand

Posted by TownCountryProperty on January 20th, 2020

Particularly with regard to the ownership sector the political consequences of the recent election in Thailand are still uncertain. Some things are going to continue–people are still living in places and the residential market, at least among the Thai population, will remain more or less stable, said Antony Picon, Associate Director of Colliers Research Thailand. He said, "it could take time for foreigners to come back en masse," he said, "some foreigners may have found the political turmoil of recent years very alarming." Picon stressed concerns about stability and said, that many of the players are standing by waiting to see approach in the next few months.

"All the Bangkok Property Markets, in particular for foreign investors, rely upon the political situation," says Khan. Nevertheless, the effects of political unrest can be seen in other markets such as the resorts of Hua Hin, which are more isolated than the capital. "Bangkok burned last time, but Hua Hin still sold strong," he said. In addition to increased interest from the UK, Europe, Russia, and China, Khan listed Hong Kong and Singapore as regional players to raise investments. There are many governments under consideration and several that might also impact the property market. One is the widely publicized loans of zero percent, which are provided by the government house bank. Almost 5,900 people applied for these special loans at the bank at a total of 8,88 billion bahts just launched at the start of August 2011.

Within two years, loans will be free of interest. For the first two years it provides a mortgage loan at a zero interest rate in households priced below 3 million baht for a term of 30 years. The program offers a loan at a full duration of 30 years. The payment will be based on the conditions of the bank for subsequent years. The bank will also pocket the 1% mortgage and 2% consumer transactions fees. This project and others are designed to boost home ownership in the lower to middle classes in the country and were part of the latest government effort to attract votes out of that segment, long part of the Red Shirts camp here in Thailand, whose main political party, Pheu Thai, is now in power. Applications will be approved until the end of this year or until credit lines expire. In fact, the property developers seeking to enter this market segment are assisted by this initiative and probably other programs. It remains to be seen how fast the governing party is now starting to strengthen its support by introducing further economic stimulus measures.

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