Finally, the Bank of Thailand (BOT) has announced new measures to help revive the property market, which is good news for property developers and those with the potential to invest in homes priced at 10 million baht or more. The adjustment of the conditions for granting housing loans, or what is known as Loan to Value (LTV), allows 100% loans for purchasing houses or condominiums priced at more than 10 million baht from May 1, 2025 to June 30, 2026, will become an important “catalyst” that helps turn around the quiet situation in the property market recently.
Mr. Sunthorn Sthaporn, Chairman of the Homeowners Association, said that he would like to thank the Bank of Thailand (BOT) for relaxing the regulations on housing loans or the LTV measure. This is a good sign for the real estate market. For the group of houses priced at 10 million baht and above, starting from the first loan contract, you can borrow 100%. For the group priced below 10 million baht, starting from the second loan contract onwards, you can borrow 100%. But if it is the first house, you still need to have a down payment of 5-10% within 1 year and 2 months, starting from May 1, 2025 to June 30, 2026.
From this adjustment of measures, the obvious impact is attracting a group of customers with good financial status, or the so-called “K-up” group, which is a group of people with the potential to buy high-priced properties. This is good news that has made real estate entrepreneurs and various associations come out to fully praise the BOT’s decision.
Attracting the rich to buy luxury houses and condos
From the said measure, the houses priced from 1-9 million baht can borrow 90-95%. The second house can borrow 100%, which is the K group – lower class or middle class. The other group can borrow 100% from the first house onwards, which is the K group – upper class, which is a group of people with a status who come to help stimulate the country’s economy through real estate. This is considered a good and appropriate thing.
The result is that it will help “support” the real estate market to continue by relying on purchasing power from the K group – upper legs, while the K group – lower legs will get some, but not much. However, lending still depends on commercial banks.
