Ubon Homes

Category: Local News and Development

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.

 

Railway Proposal for Ubon Ratchathani

Railway Proposal for Ubon Ratchathani

This except taken from Thai PBS:

The private sector of the northeastern province of Ubon Ratchathani plans to propose the construction of a double-track railway to the Lao border and the expansion of Ubon Ratchathani airport and the regional hospital during the mobile Cabinet meeting in Ubon Ratchathani and Amnat Charoen on July 23-24.

Somchart Pongpanakrai, president of the Ubon Ratchathani Chamber of Commerce, said the public sector wants to ask the government to expand an existing highway to four lanes from Ubon Ratchathani to Tambon Ban Tan in Ban Tan district where the 6th Thai-Lao Friendship Bridge will be built and improve Highway 24 from Det Udom distict to Chong Mek, a border check-point with Laos.

He said a proposal will also be made for the Ubon Ratchathani international airport to have five more parking bays to accommodate about 1.4 million passengers using the airport annually.

The Ubon Ratchathani Regional Hospital should also be expanded to have 1,099 beds to take patients from the lower Northeast and neighbouring Laos.

Mr Somchart said an 80-kilometre double-track railway should also be built from Warin Chamrap district to the Thai-Lao border checkpoint with Laos in Sirindhorn district with a budget of about 17 billion baht to facilitate the transport of goods and people.

http://englishnews.thaipbs.or.th/double-track-railway-proposed-ubon-ratchathani-cabinet-meeting/

Ubon has missed out in the past with projects like the East West corridor from Burma to Vietnam and the high speed rail links, could this be the opportunity to put Ubon back on the map in the Isaan region as an industrial trading hub.  We certainly hope so!

 

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