Housing : An Engine for Inclusive Growth
“Cross Country Experiences”
THAILAND
Ballobh Kritayanavaj
Senior Vice President
G H Bank – Thailand
11 April, 2013
1
Population and GDP : Thailand and South Asia Countries
Population
GDP Size
GDP per capita
GDP Growth
Millions
U.S. dollars
Billions
U.S. dollars
%
2013E
2013E
2013E
2012E
2013E
1,239
2,117
1,709
4.9
6.0
Pakistan
183
237
1,296
3.7
3.3
Bangladesh
152
127
835
6.1
6.1
Thailand
65
413
6,364
6.4*
5.0*
Afghanistan
33
22
668
5.2
6.5
Sri Lanka
21
65
3,104
6.8
6.7
Country
India
source : IMF, World Economic Outlook Database, October 2012
2
GDP Growth and Housing Completions
in Bangkok and Metropolitan Region
3
Housing Ladders
Prices of New Houses Offered for Sales in BMR Market 2012
by Private Housing Developers
4
EFFICIENT PRIVATE HOUSING DEVELOPERS
Data : REIC
Graphic : GH Bank
5
NHA’s Subsidized Low- Cost Housing Completions (2004 – 2012)
Avg # 30,000 units/year
6
Home Loan Outstanding in Thailand
Market Share of Home Loans Outstanding
Residential Mortgages in the Thai Economy
Items
7
1990
2000
2010
2011
2012
138
689
1873
2029
2259
All Types of Loans(AL)
1979
4309
11802
12951
15346
GDP at current price
2184
4917
10104
10460
11363
RM : AL (%)
7
16
16
16
15
RM : GDP (%)
6
14
18
20
20
Residential Mortgage
Outstanding (billion baht)
Source : Bank of Thailand
8
Key Elements for Efficient Housing Sector

9
Economic growth (Sustainable – no bubble)
- Job creation and employment stability

Housing provision for all Income levels
(inclusive, new home & resale,
housing ladders, public & private, rental & ownership)

National housing policy - Homeownership strategies
 Legislation & regulations
(Urban Planning/Zoning, land subdivision control,
building control, condominium laws, environmental control, consumer protection etc.)

Land and infrastructure development (available - accessible)

Housing finance (available - accessible – affordable )
- Low Interest rates – high LTV - long term up to 30 years)
Key Elements for Efficient Housing Sector
 Land
& property registration and transfer system
 Fiscal
policy (Taxation, subsidy - supportive)
 Investment
promotion for housing developer
 Labour and building materials
 Construction technology
 Education
10
(accurate and fast)
(privilege through BOI)
(available – good quality)
(appropriate - innovative)
+ Training & counseling programs
 Statistical data &
Information (Real Estate Information Center)
 Housing professional development
(associations – developers –home builders
financiers - valuers – brokers - sellers – property managers)
INTEGRATED HOUSING AND HOUSING FINANCE MARKET (THAILAND)
Ministry of Finance
Govt. Ministries
Ministry of Social Development
& Human Security
Bank of Thailand
Special Financial
Institutions
Govt. Agencies
(Regulators, Financiers,
Com. Banks
Govt Housing Bank
Developers, Land registrations,
Finance Companies Govt Savings Bank
Investment promoter)
Other Financial
SMC
BOI
Institutions
Private Sector
Professional
Associations
Training &
Education
Thai Condominium Assoc.
Housing Business Assoc.
Thai Real Estate Assoc.
Thai Home Builders Assoc.
Universities
RU-ABAC
CU - TU
Information & research
Valuers
Developers and Builders
REIC
www.reic.or.th
National Housing Authority (NHA)
Community Organizations
Development Institute (CODI)
RE Brokers
Ministry of Interior
Lands Department
Dept. Public Works and
Town Planning
Community/
Property Managers
Thai Valuers Assoc.
Thai RE Brokers Assoc. Property Mangt. Assoc.
Valuers Assoc. of Thailand
- Real estate business
- Housing development
GH Bank
Training Centers
- TRETS
- Associations
Universities
www.ghbhomecenter.com
Websites
Housing Journals (Thai) 19 yrs
APHJ (Eng) 6 yrs
11
Mortgage Lenders
Housing Finance Assoc.
- Housing developemt
- Housing finance
- Property Valuation
- Brokerage business etc.
Private Medias and Research Co.
-Websites
- Magazines (e.g. Home Buyer Guide etc.)
- Radios
Ballobh K. 20 Jan 2012
Govt’s policies to promote the housing sector & economy
•
Housing market stimulation policy
• Mortgage registration fee - Reducing 1%  0.01% (loan amount)
• Real estate transfer fee
2%  0.01% (appraised value)
• Specific business tax (SBT)
2%  0.01% (transaction price)
• First time homeownership policy -
Promoting more affordable housing
 GH Bank first home scheme
 Total project loan amount : Bt 20,000 million
 0% interest rate (2- 3 years)
 LTV up to 100%
 Loan amount up to 1 million
• Homeownership taxation policy
income taxation
•
 interest from home loan is deductible for
(Bt50,000  Bt100,000)
Low cost housing development policy - Board of Investment (BOI)
- Condominiums
< 1 million
- Land & house
< 1.2 million - Income tax exemption for 5-8 years