BANGKOK, Thailand – Deputy Prime Minister and Minister of Finance, Phichai Chunhavajira, on October 31, anticipates that the upcoming cabinet meeting will propose a low-interest home repair and construction loan scheme worth 55 billion baht. This initiative aims to assist low-income citizens and revitalize the sluggish real estate sector, with a projected GDP growth of 2.7% for 2024.
Phichai made the announcement at the opening of the 46th Housing and Condominium Expo at the Queen Sirikit National Convention Center, organized by the Thai Real Estate Association and other industry bodies. He acknowledged the current challenges posed by high interest rates but noted a positive trend as private sector and financial institutions begin to lower rates. The government recognizes the real estate sector’s significant contribution, accounting for up to 5% of Thailand’s GDP, with a total industry value of approximately 1.1 trillion baht.
The Finance Ministry has been actively supporting the real estate sector through various loan programs, including the Happy Home Loan scheme, which has released 20 billion baht in loans, and the Happy Life Loan, which has provided 18 billion baht in funding. The proposed cabinet measures will focus on offering low-interest loans for buying, renovating, and constructing homes and condos, especially for low-income households.
Tirachon Thanesdejsuntorn, chairman of the expo, highlighted that this event is the largest housing exhibition in the country. He expressed optimism that recent interest rate cuts by the Bank of Thailand will enhance consumer confidence, coinciding perfectly with the expo. The event, running from October 31 to November 3, 2023, features over 150 exhibitors, showcasing more than 1,000 projects, along with financial institutions offering special interest rates exclusively for attendees. The expo aims to generate around 20 billion baht in economic activity, providing opportunities for Thai citizens to increase their purchasing power before the year ends. (TNA)
