News Asia End of real estate tax breaks in Thailand will see price of new property rising in April End of real estate tax breaks in Thailand will see price of new property rising in April |
| Thursday, 04 March 2010 | |
 Thai tax break ends Thailand will not renew property tax breaks when they expire at the end of March as the economy is recovering and developers are returning to normal profits levels. The incentives, including a reduction in the property transfer fee, a cut in the mortgage registration fee and a lower special business tax, helped boost property sales which increased by 7% in 2009, officials said. But now developers are warning that they will have to pass on the additional costs to buyers and prices will rise from April as a result. The changes mean that the transfer tax, currently 0.01% will go back up to 2%. Certain vendors, including property developers will pay a 3.3% specific business tax, up from 0.11% and mortgage registration will increase from 0.01% to 1%. These taxes affect completed property so the announcement will create an incentive for developers with unsold completed inventory to sell and transfer before the expiry date. It is not expected to have a significant impact on off plan launches but it will affect developers’ profit margins as developers pay the specific business tax. Some developers may increases prices to compensate for the extra tax but the volume of competing projects scheduled to be launched this year may keep prices roughly level for similar products in similar locations. The increase in mortgage registration means that it will be more expensive for borrowers to switch lenders once special introductory interest deals expire. Thailand’s biggest home builder, Land & Houses, said it will put up prices in April to take account of the higher tax charges. It also said it expects to report only single digit growth in net profit in 2010 due to the higher costs. Without the tax breaks, the company will shoulder an additional cost of about 4% of sales. ‘Our bottom line will show single digit growth this year instead of double digit,’ said senior Executive vice president Adisorn Thananun-narapool.
This story relates to: [SEE ALL] BOOKMARK THIS PAGE (What is this?) |
- Residential real estate sales soared in Singapore in 2009, research shows 22/03/2010
- Residential property sales surge in Singapore, latest figures show 16/03/2010
- Real estate developers in India promise a more cautious outlook for 2010 & beyond 15/03/2010
- China has largest property investment market in the world after US slumps 64%, report reveals 08/03/2010
- Fears of US style property crash persist in Asia 05/03/2010
- Improved outlook signalled for Malay property market as govt outlaws dodgy developers 02/03/2010
- Higher property taxes for Hong Kong as government warns it is monitoring speculators 26/02/2010
- Tentative signs of Vietnam real estate recovery as developers seek to tempt back foreign investors 25/02/2010
- New guidelines add to transparency of Thai real estate market 24/02/2010
- Strong recovery for Asia real estate markets across all sectors 23/02/2010
PropertyWire Confidential Magazine March/April 2012
Asia: Top Headline
Bangkok property market recovers from floods, says consultants{mosimage}
The Bangkok property market has recovered from the recent floods and even the worst hit low rise housing, retail and industrial estates sectors in flooded areas have recovered, according to real estate consultants CBRE Thailand.
Search for Properties:
Feature story
Pensions guide: all you need to know about SIPPsAn increasing number of professionals of all nationalities have been moving and working abroad over the past 20 years.
Company news
RICS and KIT announce global shared professorship in property valuation and sustainabilityThe Royal Institution of Chartered Surveyors, the leading global professional body in property land and construction and Karlsruhe Institute of Technology (KIT) have come together to provide property professionals with the skills they need to future proof property, infrastructure and the built environment across the globe.
Finance Update
Santander launches new first time buyer mortgagesSantander has launched a range of first time buyer mortgages which is says are designed to help borrowers trying to get their first step on the property ladder.
Features
Pensions guide: all you need to know about SIPPsAn increasing number of professionals of all nationalities have been moving and working abroad over the past 20 years.
Brand Advice
Bookshop
Newsletter
Subscribe to our weekly newsletter and stay updated on the property market trends.
Subscribe now >>
| Compare and Apply | ||||||||
|---|---|---|---|---|---|---|---|---|
|
||||||||
|
