Thailand expects to finalise measures in two weeks to help the property sector, the finance minister said on Wednesday, as the government seeks to help developers facing sluggish sales as economic growth falters. Southeast Asia's second-largest economy is struggling to regain traction after the military seized power in May 2014 to end political unrest, as exports and consumption have remained weak.
The main problem for the property sector is banks are cautious about lending, Finance Minister Apisak Tantivorawong told reporters. "Many people want to buy houses but the economy is not good so commercial banks' lending rules are stricter," he said. The ministry is working out details, which will be finalised in two weeks and it "will try to announce them quickly", Apisak said.
One measure would be for the government to provide loans via its housing bank to home buyers who can not get mortgage loans from commercial banks, he said. The ministry also expects to finalise property tax this year, Apisak said, without elaborating. Opas Sripayak, managing director of condominium developer LPN Development Pcl, said the government's property measures would help boost demand but added: "The government will need to spell out measures clearly so that buyers can make decisions".
LPN plans to launch only six projects this year compared with a target of 10-12 projects, Opas said. In its latest efforts to lift the economy, the junta this month announced stimulus packages worth 342 billion baht ($9.47 billion), including soft loans, to help small firms and rural areas.