National Housing Policies and Programs
Thailand
National Housing
Policies and Programs
Ballobh Kritayanavaj,
Senior Vice President
Government Housing Bank
Thailand
April 19, 2010
Demographics – Thailand
Population – 65 million
Population growth – less than 0.5 per cent
per year
Migration increasing urban housing needs
36 per cent – urban population
GDP per capita - $US4,072
National Housing Policies
NESDB : National Housing Policy Subcommittee
1982-1997
GH Bank + NHA + NESDB + Private sector
Annual National Housing Report
No comprehensive national housing policy
3 main government units implement government middle and
low-income housing programs
Government Housing Bank (GH Bank), National Housing
Authority (NHA) and Community Development
Organization Institute (CODI)
Private sector provides housing from low-income to
multi-million baht homes
New Housing Policies
Cabinet approved National Housing Policy
Committee – May 28, 2008
Major responsibility of NHPC – oversee
formulation of comprehensive
long-term national housing policy
NHA and CODI play major role in housing
provision for lower income groups
Private housing developers play a leading role in
housing development for low - middle –
high income group
About GH Bank
Specialized Financial Institution (SFI) – Ministry
of Finance
Major emphasis – lower and middle income
mortgages
Total Assets Bt692 billion ($US21 billion)
(2009)
Branches : 76 + 71 points of services
Employees : 2,321
36.3 per cent of all outstanding home loans
(2009)
National Housing Authority (NHA)
Assuring shelter for all residents in Thailand
Operates as state enterprise
Rental apartments, condominium, government
employee housing
Currently, primarily acts as an enabler between
government and private sector
NHA – Baan Eur-Arthorn Project
Project to build 600,000 homes - 2005
Scaled down – currently 200,000 under
construction
Government subsidies granted to private sector
developers
Houses sold at affordable prices
GH Bank and Government Savings Bank - buyer
financing
Special Program :
GHB’s Mortgage Interest Rates
Type
Rate
Remainder of
LTV
Loan Term
1st - 2th Year = MRR - 2.00 % = 4.50 %
Ordinary
Customer
3th Year = MRR - 1.00 % = 5.50 %
MRR - 0.50 = 6.00%
70% - 85%
4th Year = MRR - 0.50 % = 6.00 %
1st Year = 3.99 %
Government
Pension Fund
2st Year = MRR – 2.25 % = 4.25%
MRR – 1.25 % = 5.25 %
100% - 110%
3th Year = MRR – 1.25 % = 5.25 %
1st Year = 3.00 %
Baan Eua
Arthorn
2st - 3th Year = MRR – 1.50 % = 5.00%
MRR – 1.00 % = 5.50 %
100%
MRR – 1.00 % = 5.50 %
80% - 90%
4th Year = MRR – 1.00 % = 5.50 %
Social
Security
member
Fixed Rate
2-Year = 4.50%
Deposit Rates
Commercial Banks VS GH Bank
Comparison Deposit Rates GH BANK VS Commercial Banks
GH BANK (%)
Commercial Bank (%)
Saving Account
0.75
0.50
Special Saving Account
1.00
0.50 - 1.25
3 - Month
1.00
0.65 - 0.75
6 - Month
1.00
0.65 - 1.00
12 - Month
1.50
0.65 - 1.00
24 - Month
2.00
1.50
36 - Month
3.00
1.75
60 - Month
3.50
1.50 - 2.50
Type of Deposit
Time Deposit Account
Sources : GH Bank and Bank of Thailand (BOT) as of 10 Feb 2010
Net Interest Margin :
Commercial Banks VS GHB
Community Organization Development Institute (CODI)
Finance slum-area communities
Develops community-based savings programs and
organization through co-operatives
Funded from Government budget
Baan Mankong program – very successful
Since 2003, CODI has funded more than 77,000
households in more than 245 districts throughout Thailand
Private-sector developers and mortgage lenders
Well developed private-sector housing industry
Provide most homes from low-income sector
to multi-million dollar homes
Commercial banks financing readily available
– 55 per cent market share
GH bank market share of home loans
– 36 per cent
BOI Promotional Housing Investment Policy - Thailand
Income tax exemption for developers (5-8 years)
Key investment promotion conditions
Housing project – minimum 50 units
Condominium unit – not less than 28 sq. meters
and sales price – not exceeding 1 million baht
Townhouse or detached house plot – not less than 70
sq. meters and sales price – not exceeding 1.2 million
baht
Housing Units Nationwide Approved by Board of Investment (BOI) 2009
Housing Completion in Bangkok
and Metropolitan Region
Newly - launched Housing Units Bangkok and Vicinity
New Home Loans in Thailand
Market Share of New Home Loans
Home Loans Outstanding in Thailand
Market Share of Home Loans Outstanding
Keys to future growth – policy issues
Reducing housing costs (Construction Technology)
Government incentive programs for the LIG (BOI)
Further developing housing financing markets
Developing resale housing markets (professional
brokers + licensing law)
Strengthening professional housing associations
Statistical data and Information for a well- functioning
housing market (REIC+ GH Bank journal)
Housing and housing finance education for the public
(Homeownership counseling services)
Thank you
www.ghb.co.th