In an exciting turn of events for homebuyers in Thailand, lenders will soon have the ability to offer loans covering 100% of the property price for first-time buyers purchasing homes valued at over 10 million baht (approximately $297,000). This announcement was made by Assistant Governor Somchai Lertlarpwasin on Thursday, marking a significant shift from the previous limit set at 90% of the property’s price, established back in 2018.

New Lending Guidelines to Boost the Property Market

Under the fresh guidelines, banks will also be permitted to grant mortgages that cover 100% of the purchase price for buyers acquiring a second residential property valued at less than 10 million baht. Previously, the central bank restricted the lending ratio for such properties to between 80% and 90%, depending on the borrower’s repayment history.

• Loan Amounts: Up to 100% for first-time buyers over 10 million baht and second properties under 10 million baht.
• Current Limits: Previously capped at 90% for first properties and 80-90% for second properties.

These relaxed lending rules are designed to take effect for loan agreements signed between May 1 and June 30, 2026, as stated by Somchai. This initiative aims to revitalize a property sector that has faced challenges, particularly in light of rising non-performing loans, leading banks to adopt a more cautious approach to lending.

Addressing Thailand’s Housing Market Challenges

Thailand is grappling with the highest household debt levels in Southeast Asia, putting additional pressure on the real estate market. In an effort to stimulate the sector, the government has previously introduced measures such as reductions in property registration and transfer fees. However, there are renewed calls for further extensions of these benefits to support homebuyers.

Recent data from the Thai Condominium Association reveals a staggering 37% decline in the sale of condominiums and houses in Bangkok and nearby areas last year, totaling around 53,000 units. Additionally, approximately 290,000 residential units remain unsold, highlighting the pressing need for a resurgence in buyer interest.

Economic Measures and Market Reactions

To combat these economic challenges, the Bank of Thailand (BOT) has slashed its benchmark interest rate twice in four months, signaling a commitment to bolstering the economy. Analysts anticipate further reductions, with a focus on addressing the country’s slowing growth trajectory.

Following the BOT’s announcement, a stock index monitoring 59 listed property developers experienced a positive shift, climbing as much as 1.2% on Thursday after earlier losses. Notably, Ananda Development Pcl surged nearly 20%, while Origin Property Pcl saw an 8.5% increase. Other prominent developers like Land & Houses Pcl, Supalai Pcl, and Noble Development Pcl also enjoyed gains exceeding 4%.

As the real estate landscape evolves, these new lending regulations present a promising opportunity for both buyers and developers alike, potentially leading to a revitalized property market in Thailand.