January 21, 2009
Bangkok (ASTV Manager Online) – The government’s tax measures are expected to create more jobs in the property sector and support house sales.
Mr. Athip Peechanont, president of the Thai Condominium Association, said the tax measures would have a psychological effect on the property market.
People’s confidence would be boosted and more spending would occur.
Related businesses such as construction materials and furniture would also benefit from the tax measures.
There was about 20,000 units of unsold house.
Tax measures were said to yield positive results in the second quarter of this year. It was expected that about 70,000 units of house would be sold.
Athip believed that tax measures would not result in property bubbles since financial institutions were strict about loan giving.
Condominium sales would drop by 10-20 percent because of lower oil prices. Buyers would prefer buying suburban single detached houses.
80-90 percent of unsold houses were single detached houses.
Mr. Prasong Aolarn, president of the Housing Business Association, said that tax measures would not be effective if commercial banks did not give their loans.
