Banker wants to see aid extension for real state

BANGKOK, 16 December 2009 (NNT) – Positive results in the real estate sector are anticipated if the government extends its tax measures to assist the business, says Kan Prajuabmoh, Managing Director of the Government Housing Bank.

According to the director, it depends on the finance minister whether the tax measures would be prolonged. Mr Khan however said that the real estate business in Thailand would not be affected much if the minister decided to cancel the measures since the sector was still strong.

Finance Minister Korn Chatikavanij is expected to decide on the matter in March next year.

Mr Khan said his bank had set its 2010 lending target at 8.8 billion THB but it might be adjusted in line with the government’s monetary policy next year. He also speculated that real estate competition in 2010 would be fiercer.

Meanwhile, Assistant Director of the Real Estate Information Center, Sammana Keetsin, urged the government to impose long-term stimulus measures for the real estate sector and adjust the existing tax measures instead of canceling them. He warned that short-term stimulus measures would cause problems like economic bubble.

The assistant director forecast that the 84,000 units of new residences would be registered in 2010, not much different from this year.