By Nikki De Guzman:
Despite the upward cost of labour, construction materials and land, developers in Thailand still able to offer affordable housing to the middle-income earners in the country, reported The Nation.
According to Ballobh Kritayanavaj, Senior Vice President and Head of Research and Information Services Department at Government Housing Banks (GH Bank), Bangkok and its metropolitan region (BMR) homebuyers have a wide range of choices in various price ranges.
Last year, 53 percent of the 103,000 new houses up for sale in the BMR went for THB2 million and below, the bank’s statistics shows.
“If a borrower obtains a THB1.7 million, 20-year loan at a 7 per cent interest rate, monthly payments would be about THB13, 180. In addition, most banks will require a 20 percent down-payment toward the home’s purchase,” Ballobh said.
Furthermore, GH Bank statistics presented that over 82 percent of new homes offered for sale in 2012 were priced at THB5 million or less.
“At a 7-percent interest rate, buyers of Bt5 million homes with a 20-year loan and a 20-percent down-payment will require a monthly income of about Bt109, 830 to qualify,” Ballobh added.
However, homebuyers in Thailand should also consider purchasing the second-hand market that is currently estimated to be equal or larger than the new home market, said Ballobh.
“The second-hand home market, especially in Bangkok and its periphery has been growing over the past several years because many homebuyers realise that in many cases, they may offer better-value for money.”
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@allproperty.com.sg
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