Thailand’s Finance Ministry is considering offering incentives to property developers that build homes for Thai seniors. Thailand’s population is aging, according to Wisudhi Srisuphan, Deputy Finance Minister.
Mr. Wisudhi stated that the government wanted property developers to build homes for the disabled and elderly that were innovative.
“If property firms developed innovative homes, they could be eligible for tax incentives,” stated Mr. Wishudi. Tax incentives are offered by the Board of Investment to any firm that creates innovative products. The definition of an home that matches the criteria for being innovative is not clearly defined.
Mr. Wisudhi reaffirmed that “if the demand is there and property firms develop homes to serve the market, we may study what we can do.” The Deputy Finance Minister did state that he cannot say whether the government will offer direct incentives to builders, but did say it is a possibility in the future.
Stimulus packages expired today that were previously given to Thailand’s struggling property market. Stimulus was offered to reduce transfer and mortgage fees to a low 0.1 percent. The stimulus package went into effect last October and helped the property market increase in Q4 2015, with new home registrations of 13 percent.
Presales on the quarter grew year-on-year by 21 percent.
The Real Estate Information Centre of Government Housing Bank’s deputy managing director, Samma Kitsin, forecasts that the property market will contract by 20 – 30 percent following the drop off of the government’s stimulus package. The market is expected to recover back to normal levels two to three months following the stimulus expiration.