The Government Housing Bank (GHB) in Thailand has offered interest-free loans of up to THB1 million (US$32,082) for the first three years, aimed at helping low-income home buyers.
The GHB has allocated up to THB20 billion (US$641.6 million) for the programme, which was financed through government subsidies of THB800 million (US$25.6 million) per year, as well as through an agreement that allows the GHB to reduce its profit remittances to the state till 2014.
Several experts said the programme will mainly benefit upcountry buyers, as fewer homes in Bangkok and its neighbouring areas cost less than one million baht.
According to a report by the Bangkok Post, developers who could benefit from the new programme include Pruksa Real Estate, as most of its units are priced at less than THB2 million (US$64,157). It also relies mostly on prefabrication techniques than can result in homes being developed in two months.
Opas Sripayak, Managing Director of LPN Development, said the stimulus package “will help the low-income market get their first home,” adding that the new programme is better than the government’s tax deduction scheme.
The interest-free mortgage programme includes housing such as detached homes and second-hand properties seized by the GHB, which currently stands at around 10,000 homes.
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