BRITISH INTERNATIONAL SCHOOL, PHUKET
Oak Maedow Phuket BRITISH INTERNATIONAL SCHOOL, PHUKET Kata Rocks
The Phuket News Novosti Phuket Khao Phuket

Login | Create Account | Search


REIC upbeat on impact of latest property tax perks

REIC upbeat on impact of latest property tax perks

BANGKOK: The recent property tax incentives are expected to help drain housing inventory by 2.4% in the final two months of the year, with the addition of 6,200 units being sold nationwide, says the Real Estate Information Center (REIC).

propertyeconomics
By The Phuket News

Sunday 1 December 2019, 01:00PM


REIC Acting Director-General Vichai Viratkapan said the housing inventory in Greater Bangkok and 26 major provinces will decline to 257,969 units by the end of the year. Photo: Bangkok Post

REIC Acting Director-General Vichai Viratkapan said the housing inventory in Greater Bangkok and 26 major provinces will decline to 257,969 units by the end of the year. Photo: Bangkok Post

Vichai Viratkapan, the centre’s acting director-general, said the amount of housing inventory in Greater Bangkok and 26 major provinces will decline to 257,969 units by the end of the year with the help of the incentives.

“With the incentives, it can reduce by 4.5% from 270,131 units in the first half,” Mr Vichai said. “Without them, it might decrease by only 2.2% to 264,197 units.”

He said an additional 6,200 units are likely to be sold and transferred in the November-December period this year as the property incentives stimulate some homebuyers to make decisions.

The property tax incentives include a cut of transfer and mortgage fees to 0.01% from 2% and 1% respectively for units valued at B3 million or less. They are effective from Nov 2, 2019 to Dec 24, 2020.

Of the 6,200 additional units expected to sell in the final two months, 4,800 will be in 26 major provinces and 1,400 will be in Greater Bangkok. Most housing units in the provinces are priced below B3mn.

In Greater Bangkok, the amount of housing inventory that had construction completed totalled 95,462 units at the end of the first half. Of this amount, 48,465 units or 50.7% were priced at B3mn or less.

The total completed unsold units priced at B3mn or less in Greater Bangkok comprised 17,592 low-rise houses, single detached houses, duplex houses and townhouses and 30,873 condo units.

Mr Vichai said the amount of housing inventory nationwide will continue to drop by 9.9% to 245,371 units in the first half of 2020 and fall by 15.2% to 225,976 units in the second half of 2020.

UWC Thailand

The major reduction will be in the low-rise segment, with declines of 11% and 17.5% respectively for the same periods.

“To reduce the inventory, developers should focus on boosting sales of ready-to-transfer units and not launch too much new supply next year,” Mr Vichai said.

The REIC estimates the amount of new residential supply launched in Greater Bangkok this year at 112,044 units, down 23.2%.

Low-rise and condo supply is to drop by 24.4% and 22.4% respectively to 46,010 and 66,034 units.

For 2020, the REIC forecasts the amount of new residential supply being launched to total 113,000-125,000 units, up 1.4-11.5% from 2019.

Low-rise will increase by 5.9-16.5% to 48,000-54,000 units, while condo will either drop 1.7% or rise 8.2% to 65,000-71,000 units.

Read original CBRE report here.

Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.

CAPTCHA

Be the first to comment.

 

Have a news tip-off? Click here

 

Phuket community
Video shows cameras being removed from shootout gambling den

Oh yeah..."The commissioner said if police had solid evidence that the place operated as a casi...(Read More)


Four Points by Sheraton opens 600-room resort in Patong

Agreed. Horrible timing for such a huge and massive resort to show up on the market. Smaller guestho...(Read More)


More stranded Russians fly home from Phuket

Suvarnabhumi's website reports quite a lot of actual international arrivals and departures, incl...(Read More)


‘Safe and Sealed’ brings hope for tourism revival

another dose of wishful thinking, who on earth would pay twice the price to be herded to third rate ...(Read More)


Dual prices on agenda

SEC2, a electric- and water bill not show or you are Thai or Foreigner. It even can be a bill from ...(Read More)


Search resumes for missing people from sunken ferry

Where is the 3rd lorry, with another 45 tons of garbage blocks ? Were the lorries not secured to th...(Read More)


Patong workers file complaint over unpaid salary, no social security payments

How is this unacceptable employers behaviour possible on Phuket? A shameful situation. Phuket Provin...(Read More)


Dual prices on agenda

When you see the photo., it is plain thick skin racism/discriminatory/ anti foreign tourist. Time fo...(Read More)


Investigation into capsized ferry as 1 confirmed dead, 4 still missing

@BigA, a tanker ship with all tanks secured/closed, has always reserve buoyancy, no matter how littl...(Read More)


More stranded Russians fly home from Phuket

CaptainJack69, normal foreigners still not allowed to fly in. These repatriation flights are probab...(Read More)