Transcript Mr. Ballobh Kritayanavaj, Government Housing Bank, Thailand

Housing : An Engine for Inclusive Growth
“Cross Country Experiences”
THAILAND
Ballobh Kritayanavaj
Senior Vice President
G H Bank – Thailand
11 April, 2013
1
Population and GDP : Thailand and South Asia Countries
Population
GDP Size
GDP per capita
GDP Growth
Millions
U.S. dollars
Billions
U.S. dollars
%
2013E
2013E
2013E
2012E
2013E
1,239
2,117
1,709
4.9
6.0
Pakistan
183
237
1,296
3.7
3.3
Bangladesh
152
127
835
6.1
6.1
Thailand
65
413
6,364
6.4*
5.0*
Afghanistan
33
22
668
5.2
6.5
Sri Lanka
21
65
3,104
6.8
6.7
Country
India
source : IMF, World Economic Outlook Database, October 2012
2
GDP Growth and Housing Completions
in Bangkok and Metropolitan Region
3
Housing Ladders
Prices of New Houses Offered for Sales in BMR Market 2012
by Private Housing Developers
4
EFFICIENT PRIVATE HOUSING DEVELOPERS
Data : REIC
Graphic : GH Bank
5
NHA’s Subsidized Low- Cost Housing
Completions (2004 – 2012)
Avg # 30,000 units/year
6
Home Loan Outstanding in Thailand
Market Share of Home Loans Outstanding
Residential Mortgages in the Thai Economy
Items
7
1990
2000
2010
2011
2012
138
689
1873
2029
2259
All Types of Loans(AL)
1979
4309
11802
12951
15346
GDP at current price
2184
4917
10104
10460
11363
RM : AL (%)
7
16
16
16
15
RM : GDP (%)
6
14
18
20
20
Residential Mortgage
Outstanding (billion baht)
Source : Bank of Thailand
8
Key Elements for Efficient Housing Sector

9
Economic growth (Sustainable – no bubble)
- Job creation and employment stability

Housing provision for all Income levels
(inclusive, new home & resale,
housing ladders, public & private, rental & ownership)

National housing policy - Homeownership strategies
 Legislation & regulations
(Urban Planning/Zoning, land subdivision control,
building control, condominium laws, environmental control, consumer protection etc.)

Land and infrastructure development (available - accessible)

Housing finance (available - accessible – affordable )
- Low Interest rates – high LTV - long term up to 30 years)
Key Elements for Efficient Housing Sector
 Land
& property registration and transfer system
 Fiscal
policy (Taxation, subsidy - supportive)
 Investment
promotion for housing developer
 Labour and building materials
 Construction technology
 Education
10
(accurate and fast)
(privilege through BOI)
(available – good quality)
(appropriate - innovative)
+ Training & counseling programs
 Statistical data &
Information (Real Estate Information Center)
 Housing professional development
(associations – developers –home builders
financiers - valuers – brokers - sellers – property managers)
11
RATED HOUSING AND HOUSING FINANCE MARKET (THAILAN
Ministry of Social Development
Ministry of Finance
Ministry of Interior
Govt. Ministries
& Human Security
Bank of Thailand
Special Financial
Institutions
Govt. Agencies
Lands
Department
National Housing Authority
(NHA)
Community OrganizationsDept. Public Works
Town Planning
Development Institute (CODI)
(Regulators,
Com. Banks Govt Housing
Financiers,
Finance
Bank
Developers, Land
Companies
Govt Savings
registrations, BOI
Other
Bank
Investment
Financial
SMC
Community/
promoter)
RE Brokers Property
DevelopersInstitutions
and Builders Valuers
Mortgage Lenders
Private
Sector
Managers
Professional
Associations
Training &
Education
Thai Condominium Thai Valuers
Thai RE Brokers Property
Mangt. Assoc.
Assoc.
Assoc.
Assoc.
Housing Business Valuers Assoc. of
Thailand
Assoc.
Thai Real Estate
Assoc.
Thai Home - Real estate
Training Centers - Housing developemt
Universities
Builders Assoc.
business
- Housing finance
RU-ABAC
CU - TU
ormation & research
REIC
www.reic.
or.th
- Housing
development
GH Bank
Housing
Finance Assoc.
- TRETS
- Property Valuation
- Brokerage business etc.
Associatio
ns
Universities
Private Medias and Research Co.
www.ghbhomecent
Websites
er.com
Housing Journals
(Thai) 19 yrs
-Websites
- Magazines (e.g. Home
Buyer Guide etc.)
Ballobh K. 20 Jan
Govt’s policies to promote the housing sector & economy
•
Housing market stimulation policy
• Mortgage registration fee - Reducing 1%  0.01% (loan amount)
• Real estate transfer fee
2%  0.01% (appraised value)
• Specific business tax (SBT)
2%  0.01% (transaction price)
• First time homeownership policy -
Promoting more affordable housing
 GH Bank first home scheme
 Total project loan amount : Bt 20,000 million
 0% interest rate (2- 3 years)
 LTV up to 100%
 Loan amount up to 1 million
• Homeownership taxation policy
income taxation
•
 interest from home loan is deductible for
(Bt50,000  Bt100,000)
Low cost housing development policy - Board of Investment (BOI)
- Condominiums
< 1 million
- Land & house
< 1.2 million - Income tax exemption for 5-8 years