Japan · Nation Thailand
Thai housing groups seek tax relief as loan rejections may hit 50%
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Three Thai property associations are preparing to seek additional tax relief from Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas, as the housing industry warns that mortgage rejection rates could reach 50% in 2026.
Key facts
- Sunthorn said purchasing power remained fragile, with mortgage rejection rates at 44% in the first half of 2026
- The Real Estate Information Center (REIC) forecasts that residential ownership transfers nationwide will contract by 4–5% in 2026, pointing to continued pressure on the market.
- Existing housing support measures include reductions in ownership-transfer and mortgage registration fees to 0.01% for eligible transactions, alongside the easing of loan-to-value (LTV) limits through June 30, 2027.
- Sunthorn said developers currently face a 0.3% commercial tax rate on these units
- The associations are seeking the application of a 0.03% residential rate instead, with the aim of lowering the cost of holding unsold inventory.
- Sunthorn Sathaporn, president of the Housing Business Association, said his association was working with the Thai Real Estate Association and the Thai Condominium Association on proposals to strengthen homebuyer incentives and reduce
Summary
Sunthorn Sathaporn, president of the Housing Business Association, said his association was working with the Thai Real Estate Association and the Thai Condominium Association on proposals to strengthen homebuyer incentives and reduce developers’ costs.
The groups plan to discuss the measures with Ekniti, who is scheduled to preside over the opening ceremony and deliver a keynote address at the 50th House and Condo Show, running from October 29 to November 1, 2026.