PATTAYA, Thailand – The Government Housing Bank (GHB) has stated that the impact of the March 28 earthquake on Thailand’s real estate sector will only be short-term. The bank is confident that customers will not cancel their reservations or contracts as initially feared, and transactions for condominium purchases are returning to normal.
On April 2, GHB Managing Director Kamolphop Veerapala highlighted the key factors supporting the real estate sector in 2025. One of the main drivers is the relaxation of the Loan-to-Value (LTV) regulations by the Bank of Thailand, which allows qualified buyers to secure full 100% financing for a second home purchase. Additionally, reduced transfer and mortgage registration fees—set at just 0.01% for homes priced at no more than 7 million baht—are expected to stimulate the market further.
Kamolphop expressed confidence that the government will introduce additional measures to support housing loans. GHB’s loan disbursements have already shown significant growth, with 46 billion baht in new loans issued in the first quarter of 2024—an increase of 12 billion baht compared to the same period last year. The demand for low-rise housing, including detached houses and townhouses, has risen by 20%. GHB aims to issue at least 240 billion baht in new housing loans in 2025, exceeding last year’s total.
The overall economic outlook for 2024 is expected to see growth between 2.2% and 3.2%, supported by increased government spending, rising private sector demand, and continued private consumption expansion. Additionally, stable and potentially declining interest rates, along with government-backed low-interest loan policies, will further enhance home affordability for the public.
Despite positive factors, certain risks remain. High household debt, though slightly declining, continues to limit consumer spending. Commercial banks have also implemented stricter lending criteria, which may affect loan approvals.
The earthquake on March 28 briefly impacted consumer confidence in high-rise living, leading to a short-term slowdown in condominium purchases. However, the market is already recovering, with an average of 400 condominium transfers processed daily over the past three days. GHB is committed to introducing measures to reassure customers and maintain confidence in the market.
Kamolphop acknowledged that some customers initially delayed their condominium transfers due to earthquake concerns, but this hesitation was temporary. “We do not foresee any major issues with customers abandoning reservations or canceling contracts. The demand for housing—whether detached homes, townhouses, or condominiums—remains strong,” he said.
Looking ahead, GHB plans to place greater emphasis on low-rise and second-hand homes, as some buyers remain cautious about high-rise buildings. The bank has identified nearly 900,000 households that qualify for financing but do not yet own a home, indicating strong potential for continued growth in Thailand’s housing sector.
