GH Bank sees bright future for 2010 property market

BANGKOK, 4 January 2010 (NNT) – The Government Housing Bank (GH Bank) has foreseen a bright prospect for the domestic property market in the first quarter this year due to increasing confidence, decreasing interest and other positive factors at present.

GH Bank President Khan Prachuabmoh stated that the property market this year had received positive effects from the interest rate, which would remain low in the first half of this year. He enumerated reduction of land transfer and registration fee, improving economy and rising purchasing power of people as other contributing factors.

The president however warned that domestic political conflict, potential rising price of gasoline, and inflation rate could shake confidence and deter atmosphere in the market.

Mr Khan expected that the bank could approve about 77 billion THB loan this year. He said the total loan-leasing amount could reach to 100 billion THB after combining with the loan approving policy of the government.

However, the president said that the reduction of land transfer and registration fee policy of the government could reduce expenses of people to conduct transactions. However, he said the bank had lost many customers worth 300 million THB thus far due to the policy since customers decided to refinance with other banks upon more attractive conditions.