Individual taxpayers can deduct the interest paid on their mortgages during a given tax year from their taxable income.
From the 2008 tax year onwards, the maximum mortgage interest allowance has been increased to 100,000 baht from 50,000 baht.
The current global economic crisis has had a considerable effect on Thailand's real estate market, and house purchasing demand has decreased accordingly. The stagnant housing market will have an impact on many businesses, especially real estate developers, financial institutions, construction companies, and construction material suppliers.
To address this issue, on Jan 20, 2009, the cabinet passed a resolution that provides tax measures intended to stimulate the Thai economy. One measure is a personal income tax deduction on mortgage loan principal payments of up to 300,000 baht. The cabinet resolution is not yet law, but is expected to be announced in the Government Gazette in the near future.
Sunday, March 29, 2009
Wednesday, March 25, 2009
Samui's luxury property market faces challenging times
Global and domestic crises are worsening and moving through the first quarter of 2009 the market outlook forecasts an extremely challenging property market in Samui and other key resort areas in Thailand, according to C9 Hotelworks latest Samui Luxury Villa Market Report.
"The evolving tourism sectors and broadening access to Samui introduce a new set of potential investors to the islands real estate market, and with changes to how the island is governed it may well alleviate concerns about necessary infrastructure development and other local issues," said Bill Barnett, Managing Director of C9 Hotelworks.
Thailand is still suffering from the recent political events and a national agenda which focused more on domestic affairs whilst other regional economies were gearing up to address the impact of a global downturn. As a positive though, the Thai baht depreciated approximately 15% over the past 12 months versus major currencies and is forecasted to devalue another 5% in 2009, thus creating lower acquisition prices for offshore buyers.
"The evolving tourism sectors and broadening access to Samui introduce a new set of potential investors to the islands real estate market, and with changes to how the island is governed it may well alleviate concerns about necessary infrastructure development and other local issues," said Bill Barnett, Managing Director of C9 Hotelworks.
Thailand is still suffering from the recent political events and a national agenda which focused more on domestic affairs whilst other regional economies were gearing up to address the impact of a global downturn. As a positive though, the Thai baht depreciated approximately 15% over the past 12 months versus major currencies and is forecasted to devalue another 5% in 2009, thus creating lower acquisition prices for offshore buyers.
Monday, March 23, 2009
Low End Thai Property Shows Possible Recovery, High End Ails
Thailand Preuksa Real Estate Plc's sales doubled to Bt900million in January, from just Bt400million in December, and grew to Bt1.3billion in February, according to their chief operating officer Prasert Taedullayasatit in a Bangkok Post interview.
Things seem to be improving across the board in the lower end of Thailand's real estate sector, with up to 20 new developments launched this year so far, it seems some parts of Asia may be as quick to bounce back as they were to fall.
Other parts however do not seem so bouncy: high end condominium developer Raimon Land has frozen all new projects it planned to initiate this year, and is reviewing its development strategy.
Things seem to be improving across the board in the lower end of Thailand's real estate sector, with up to 20 new developments launched this year so far, it seems some parts of Asia may be as quick to bounce back as they were to fall.
Other parts however do not seem so bouncy: high end condominium developer Raimon Land has frozen all new projects it planned to initiate this year, and is reviewing its development strategy.
Tuesday, March 17, 2009
Thai companies hit by emirate's property slump
With the bursting of the real-estate bubble, Thai contractors such as Italian-Thai Development, Nawarat Patanakarn Plc, Ch. Karnchang and Power Line Engineering Plc are all feeling the pain of the problems in the region.
"Yes, there are some problems in the work we are doing in that part of the region and outside Thailand," said Polpat Karnasuta, the president of SET-listed Nawarat Patanakarn.
One of the problems, he says, is the simple fact that the crisis has affected the companies that were undertaking the projects and now they have become "more fussy" with their payments.
"Yes, there are some problems in the work we are doing in that part of the region and outside Thailand," said Polpat Karnasuta, the president of SET-listed Nawarat Patanakarn.
One of the problems, he says, is the simple fact that the crisis has affected the companies that were undertaking the projects and now they have become "more fussy" with their payments.
Tuesday, March 10, 2009
Bangkok real estate
With relatively little new supply in the pipeline, Bangkok’s grade A office sector could be one of the first to rebound when the economic situation improves, according to CB Richard Ellis.
Nithipat Tongpun, CB Richard Ellis (CBRE) head of office services, said prime rental rates in Thailand have not fallen, unlike Singapore and Hong Kong.
The last six months has seen two of the biggest transactions in the history of the office market in Bangkok, including DTAC’s record deal to lease 61,500 sq m in Chamchuri Square, a new grade A office development on Rama IV Road.
Chamchuri Square is the largest office building completed since the 1997 crisis, and over 80 percent of space has been filled since its opening late last year.
Nithipat Tongpun, CB Richard Ellis (CBRE) head of office services, said prime rental rates in Thailand have not fallen, unlike Singapore and Hong Kong.
The last six months has seen two of the biggest transactions in the history of the office market in Bangkok, including DTAC’s record deal to lease 61,500 sq m in Chamchuri Square, a new grade A office development on Rama IV Road.
Chamchuri Square is the largest office building completed since the 1997 crisis, and over 80 percent of space has been filled since its opening late last year.
Sunday, March 1, 2009
Thai island features in disposal programme
Michael Lindsay, the global head of real estate at KPMG’s corporate finance arm, first visited Koh Samui in 1982, in the days when the Thai island barely featured in travel guides.
Thanks to the collapse of Lehman Brothers, he recently had a professional reason to return to the tourist hotspot. “It was unrecognisable,” he says.
Outsiders have never before got to peek inside the balance sheet of a global investment bank in this manner and he admits to “fascination” at what he has discovered.
His efforts are focused on a particular Hong Kong entity that has an aggregate real estate exposure of $1.25bn, spread across 44 positions, in loans of various forms to hotel developments and retail and commercial buildings.
Thanks to the collapse of Lehman Brothers, he recently had a professional reason to return to the tourist hotspot. “It was unrecognisable,” he says.
Outsiders have never before got to peek inside the balance sheet of a global investment bank in this manner and he admits to “fascination” at what he has discovered.
His efforts are focused on a particular Hong Kong entity that has an aggregate real estate exposure of $1.25bn, spread across 44 positions, in loans of various forms to hotel developments and retail and commercial buildings.
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