BANGKOK: Deputy Prime Minister and Minister of Finance, Pichai Chunhavajira, is anticipating the next Cabinet meeting to approve a substantial low-interest home repair and construction loan worth 55 billion baht. This initiative aims to assist low-income individuals and invigorate the lagging real estate sector, with hopes that the country’s GDP will increase by 2.7% in 2024.
According to Thai News Agency, Mr. Pichai Chunhavajira presided over the inauguration of the 46th Home and Condo Expo at the Queen Sirikit National Convention Center. This event is organized by the Thai Real Estate Association, the Housing Business Association, and the Thai Condominium Association. Despite the prevailing challenge of high interest rates, the real estate sector, along with private entities and major financial institutions, is making concerted efforts to mitigate interest rates. These efforts have prompted the government to take an active role in addressing the situation.
Recognizing the significance of the real estate s
ector to Thailand’s economy, which contributes up to 5% of the nation’s GDP, the government has been proactive in setting policies to bolster this industry. In 2023, the real estate sector contributed approximately 1.1 trillion baht to the GDP. To continue this trend, the Ministry of Finance has launched initiatives like the Happy Home and Happy Life loan projects, which have been well-received. The Ministry is now poised to propose a Cabinet resolution for low-interest loans aimed at house buying, decoration, repair, and construction, totaling 55 billion baht. This measure is designed to make housing more accessible for low-income individuals, allowing them to secure low-interest loans for home improvements and expansions, thereby stabilizing their living conditions. If approved, this could be a crucial step in sustaining economic growth into the following year, with hopes pinned on a 2.7% GDP growth in 2024.
Mr. Thirachon Thanesdechsunthon, Chairman of the 46th Home and Condo Expo, highlighted the signific
ance of the expo as the nation’s largest housing fair, uniting the real estate sector, private enterprises, and financial institutions to propel economic momentum. The recent interest rate reduction by the Monetary Policy Committee is expected to boost consumer confidence. The 46th Home and Condo Expo provides an opportune moment for entrepreneurs showcasing over 1,000 projects, offering Thais increased purchasing power as the year concludes. The real estate sector is projected to generate up to 20 billion baht in sales through this event.
The expo features more than 150 entrepreneurs and over 1,000 projects, alongside financial institutions offering special interest rates exclusively for attendees. Construction material suppliers are also present to offer guidance on building, extensions, and home decoration. The event is scheduled from October 31 to November 3, 2024, from 10:00 a.m. to 8:00 p.m. at Hall 5, LG Floor, Queen Sirikit National Convention Center.
