The Thai government authorized cutting property transfer and mortgage fees to 0.01 per cent until the end of the year to bolster spending in the property market, the spokesperson said on Tuesday.
Published in the Royal Gazette, the fee cuts on residential buildings will come to effect instantly and will run until December 31. The prior property transfer fee was 2 per cent, while the mortgage fee was 1 per cent.
The Finance Ministry expects the measure to boost around 291 billion baht to the economy, raising gross domestic product (GDP) by 0.58 per cent, Deputy Government Spokesperson Traisulee Traisoranakul said.
Buildings eligible for the cut include single houses, detached houses, terraced houses, commercial buildings, and condominiums. Both appraisal and mortgage of such assets shall not be over 3 million baht, separately.
Analysts at Yuanta Securities believe that this news would benefit Pruksa Holding (PSH), Supalai (SPALI), and AP Thailand (AP), all of which provide properties for less than 3 million baht.
“This will serve as a starting point for boosting purchasing power in the property sector,” Yuanta said in a note.
The government also allowed debtors seeking debt restructuring with financial institutions to receive the same cuts in their property transfer and mortgage fees until 2026, to help them withstand economic burden during the Covid-19 pandemic.