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Thailand: Property tax cut beefs up supply
An extension of the property tax cut on transfer and mortgage fees this year, which includes second-hand homes, increased the housing supply offered in the market in the second quarter.
Vichai Virakapan, acting director-general of the Real Estate Information Center (REIC), said the number of second-hand homes nationwide offered for sale in the second quarter of the year totalled 162,716 units per month on average, worth a combined 996 billion baht.
“The monthly average and value in the second quarter were the largest since the first quarter of 2021,” he said. “The figures grew by 18% from the first quarter. The increase was seen almost across the board.”
The largest category for second-hand homes listed for sale was single detached houses at 64,392 units, followed by condos (49,250 units) and townhouses (42,626 units), according to the REIC.
The biggest quarter-on-quarter increase was for condos at 21%, followed by shophouses, which grew 20%. The growth of townhouses, single detached houses and duplex houses was 17%, 16.6% and 1.9%, respectively.
The range of prices in the second quarter with the largest quarterly increase comprised units priced below 1 million baht, up 56%, followed by those priced 1.01-1.5 million baht (17.7%) and 1.51-2 million baht (14.3%), said the centre.
“This finding suggests second-hand homes with prices below 3 million baht listed for sale in the second quarter made up the largest group, likely driven by the property tax incentives that started to cover second-hand homes from Jan 18, 2022,” said Mr Vichai.
The property tax incentives, offering a cut of transfer and mortgage fees from 2% and 1%, respectively, to 0.01%, run until Dec 31, 2022.
The largest segment for sale in the second quarter was homes priced below 1 million baht, followed by 3.01-5 million baht and 2.01-3 million baht, respectively.
REIC compiled the second-hand homes nationwide listed for sale through private sector websites and those owing mortgages to the financial sector, state-owned banks, asset management companies and the Legal Execution Department since the first quarter of 2021.
By province, the top 10 comprised Bangkok (representing 38.6% by unit number and 62.2% by value), Nonthaburi, Samut Prakan, Phuket, Chon Buri, Surat Thani, Pathum Thani, Chiang Mai, Prachuap Khiri Khan and Nakhon Ratchasima. The largest quarterly hike in volume was Chon Buri at 20.6%, followed by Samut Prakan (9.3%) and Bangkok (6.6%).
Source: https://www.bangkokpost.com/business/2423491/property-tax-cut-beefs-up-supply