Housing loans up in second quarter
THERE is a bright outlook for housing loan growth in the second half of this year after a 12.8% increase in the second quarter over the first quarter which led to 5.6% rise in the first half, Deputy Finance Minister Wisudhi Srisuphan said at the opening of Home Buyers’ Expo 2016 at Queen Sirikit National Convention Center yesterday.
Housing loans would continue to rise even though real estate stimulus measures expired last April because low interest rates reduce homebuyers’ cost.
Moreover prices of construction materials have also decreased by 5% since the beginning of the year which in turn reduces housing prices, Thai News Agency quoted Mr Wisuhdi as saying.
This huge industry is also helped by the forming of Asean Economic Community, introduction of special economic zones and expansion of train routes.
Asean region continues to draw investor interest with the most popular destinations being Jakarta followed by Manila and Phnom Penh.
Meanwhile Kitti Patpongpibul, president of Housing Finance Association, said the property market should continue to expand at a good rate in the second half of the year after performing well in the first half with the release of 290 billion baht worth of housing loans, which is higher than 275 billion baht issued in the same period last year.
He expects a growth of 5-7% this year from a total of 570 billion baht worth of housing loans released last year.
The Home Buyers’ Expo 2016 is running at Queen Sirikit National Convention Center during August 18-21, 2016 with there being 300 condominium, single house and townhouse projects on show. Finance institutions are also unveiling special terms at the show with an example being Government Housing Bank offering a special rate of 0.124% a year for the first five months of a housing loan. There are also good quality resale property available at as much as 20% discount .
CAPTION:
TOP: There are many costly condominiums in Bangkok’s central business district.
By Thai Residents reports; source: Thai News Agency
Comments
