COVID-19 has changed the way we perceive the world from traveling to social distancing, from how we work to how we spend our money. As an air of caution arose around the property market in Thailand, many consumers have expressed that the government should step in to help buyers and to try and stimulate the market.
Research collected from Thailand Consumer Sentiment Study reveals that this year most Thais feel that the most important way to help boost the market is to reduce interest on both new and existing loans. Last year respondents were just concerned with reducing interest on home loans in general, but since the pandemic has continued into 2021 caution about the market has continued with many respondents seeing that the government needs to take steps to intervene.
“Currently with COVID-19, the government should reduce the transfer fee from 2% to 0.1%. They should reduce the tax too. This will encourage us to transact more”, commented a male homeowner aged 35 years.
The next government intervention Thais expect is to introduce tax reductions for first buyers, a sentiment that younger Thais and non-property owners stressed the most as it impacts them the most. Plus, the property market needs first-time buyers to keep the property market moving as over time these first-time buyers go on to upsizing or investing in an additional property.
Over half of Thais prefer home loans over 25 years to minimise their monthly instalments while reducing the down payment required when buying a property was the next important factor. 78% of respondents stated that interest rates are the top consideration when choosing a home loan.
While 60% had concerns over their job stability as to whether they should apply for a loan explaining why some respondents even suggested that home loans and interest holidays for three to six months would help people with their finances.
However, overall the study revealed that there is a real thirst to reduce costs associated with house buying rather than just putting them on pause.
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