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Category: Economics

Thailand drops entry requirements!

25th May Government Announcement

As of 1st July 2022 the Thai Government have finally announced the pandemic measures for entering the country such as the Thailand Pass and mandatory insurance coverage are to be dropped with the exception of testing 72 hours prior to travelling to Thailand.

Thailand pass entry requirements dropped

Thailand pass

The controversial Thailand pass scheme which has been plagued, no pun intended, with problems from the outset causing issues for potential travelers to the Kingdom.  The much welcomed announcement comes at a critical time when many individuals are not just wanting come for a holiday in the sun but are considering to relocate from their native Western homes due to spiraling inflationary pressures.

Global economic downturn

Many are realizing that cost of living is getting out of control in Western countries and are making plans to sell up and move to a more affordable part of the world such as Thailand.  The price hikes across the board are not going to improve any time soon and are likely to worsen over the coming months and years.

Whilst prices have increased in Thailand not to the extent of other Western nations.  Not reserved to energy; shocking reports from Australia of $12 AUD for a lettuce for example is a stark warning of what is yet to come.

Large agricultural provinces such as Ubon Ratchathani are starting to look more and more attractive with relatively low cost of living, cheaper energy prices, a tropical climate that gives the ability to farm all year round and affordable property is attracting the attention of those looking for alternatives.

“Entry Measures for Thai and Foreign Nationals (From 1 July 2022)

– Thailand Pass not required

– Certificate of vaccination or an RT-PCR / Professional ATK COVID-19 test result issued within 72 hours before departure

– Medical insurance not required

– Airlines will check your documents”

Much more to follow from Ubon Homes on the worsening global economic situation and tips to position yourself before the downturn/collapse.

Government stimulus helping buyers!

Reduction of transfer & mortgage fees

In May 2019 cabinet approved “Government stimulus helping buyers!”.  The bill, designed to boost the ailing property industry, was implemented and came into effect on 2nd November 2019 and will run until 24th December 2020.

The Government stimulus package is expected to help 58,340 families own their own houses, helping 175,020 people.  Families that are low- and middle-income households who have yet to own their own home are the target.

What’s in the Government stimulus package?

So far the Government have announced:

  • Reduced transfer fees from 2% down to 0.01% for properties with a registered value of 3 million baht or less.
  • Mortgage registration fees to also be reduced from 1% to 0.01%.
  • GHB Bank to offer a lower 3 year teaser rate at just 2.5% during the period.

There are further announcements expected from the Government initiative plan to help bolster the market which is integral to the economy.

Why are they introducing a Government stimulus bill

This isn’t the first time the government have implemented such actions, in 2009-2010 both the business tax was reduced from 3.3% to 0.1%, transfer fees from 2% to 0.01% and mortgage registration fees from 1% to 0.01%.  This was done to strengthen the market after the 2008 global financial collapse in which properties all over the world plummeted in value.

Towards the end of 2015 the Bank of Thailand announced warned high street banks to tighten their lending criteria as household debt to nominal GDP (see chart below) was showing signs of overheating with soaring levels of private debt.

source: tradingeconomics.com

We can see it hits its peak at the end of 2015 and the measures taken by the banks to tighten lending criteria causes a dip followed by a plateau effect.  This chart is a good indicator for the property market.  Bank lending determines property prices and buoyancy of the market.

The Government stimulus package has been introduced to boost property sales which helps both buyers and developers in a market which has become stagnated.


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