Thailand eases loan-to-value rules to revive property sector

Thailand’s central bank has temporarily eased loan-to-value (LTV) regulations from May to June next year in a bid to support the struggling real estate sector while maintaining financial stability.

The Bank of Thailand (BOT) raised the LTV limit to 100% for all housing contracts, up from the previous 70 per cent–90 per cent range. This adjustment applies to all home purchases, not just first-time buyers purchasing properties under 10 million baht ($297,265).

The move comes as property developers urge government intervention to counter low demand, excessive supply, strict mortgage requirements, and rising household debt.

“The real estate sector is slowing down continuously with no clear signs of recovery,” the BOT stated, emphasising that the relaxed rules aim to address supply challenges and support related industries. However, the central bank cautioned that the measure’s impact on Thailand’s broader post-pandemic economic recovery may be limited.

Attribution: Reuters

Subediting: Y.Yasser