Housing prices set to edge up next year

BANGKOK, Nov 18 (TNA) – Housing prices in Thailand are set to increase by 3-4 per cent next year unless the government extends a measure to reduce the ownership transfer fee, the mortgage fee, and the specific business tax to 0.01 per cent, according to a leading property developer.

Prasert Taedulayasathit, Senior Executive Vice President and Director of Preuksa Real Estate Pcl, said the housing price direction for next year depends on the government’s decision to extend the tax reduction measure, which is due to expire on March 28.

At present, he said, it could not yet estimate how the government would move on the measure. However, it is likely the government will not extend it because the property sector has already picked up as can be witnessed by the leapfrogging growth in third-quarter operating results of listed property developers.

He conceded the property market this year and next year would be 70-80 per cent dominated by five major developers since commercial banks still focus their lending on main developers. Most small developers opt to keep a watch on the situation for a while.

He predicted interest rates will edge up next year, but will not adversely affect homebuyers because the rates would rise marginally in the second half of the year. (TNA)