The Thai economy has slowed since the outbreak of COVID-19. Economic activities must come to a halt. There is a problem of unemployment. People’s income has decreased. It has affected the payment of people’s debts. And even though COVID-19 It’s going to be resolved. But the Thai economy still cannot recover as expected. from the poison of the world economy
The most obvious reflection is Amount of assets awaiting sale or NPA of banks and financial institutions and asset management companies That has accelerated very high by “Alongkot Bunmasuk”, Secretary-General and Executive Chairman of the Mortgage Association, revealed that the NPA trend of financial institutions has a continuous upward trend.
NPA of bank assets increased 75%, expected for the entire system to be more than 400 billion.
If we go back to 2018, before the COVID-19 outbreak, it was found that NPAs of commercial banks had book value. which was reported by the Bank of Thailand as 93,734 million baht, while the latest figures as of August 2023, NPAs of commercial banks had a total book value of 163,624 million baht, an increase of 75% from 2018.
This does not include NPA from specialized financial institutions. and property management companies It is estimated that NPAs throughout the system will have a total value. (according to the valuation) is approximately 4-5 hundred billion baht and there is still a tendency for NPAs to continue to increase after the measures to assist financial institution debtors by the Bank of Thailand end.
Meanwhile, the problem of household debt burden is increasing. Inflation rates are still likely to increase. Likewise, interest rates are still in an uptrend. Affecting the purchasing power of consumers together with the war situation that occurred in both the Russian-Ukrainian war And the recent war between Israel and Hamas will further aggravate the Thai economy’s slower recovery. And when the measures to assist debtors of financial institutions end, there may be more NPAs entering the system.
Golden opportunity to buy a second-hand house, 20-30% cheaper.
The secretary of the Mortgage Association also said that from the above trends, it may be a supporting factor that makes buying a second-hand home in the last period of 2023 considered a golden opportunity for consumers. This is because the price of second-hand houses is 20-30% cheaper than new houses and is in a location where new houses cannot be built at present. Importantly, the cost of new home construction is likely to continue rising due to rising land prices, material prices, and energy costs.
While banks and financial institutions Has expanded channels for marketing second-hand homes through various social media. It increases sales opportunities. and greater access to consumers coupled with measures to stimulate real estate By reducing the transfer fee to 1% and reducing the mortgage registration fee to 0.01%, covering the sale of second-hand homes priced not more than 3 million baht, which will expire at the end of 2023 and it is unclear whether the measure will be extended. or not
While banks and financial institutions Try to expedite the release of NPAs during the final period of the year. By organizing marketing activities including special price promotions With attractive loan conditions
“Buying a second-hand home during this time is therefore a good opportunity for buying to live in. and buy for investment With a large number of products to choose from According to the location that customers have needs at a special discount price and low interest loans They also have the right from the real estate stimulus measure to reduce transfer fees. and take out a mortgage in an amount not exceeding 3 million baht.”
Go ahead and organize a home loan expo. and second-hand house of the year
The association is in the process of preparing to organize the Home-Loan-NPA Grand Sale 2023, a home loan expo. and second-hand house of the year Held between 17-19 November 2023 at the Event Hall, Queen Sirikit National Convention Center, with banks, financial institutions. and asset management companies Participated in offering NPA and interest rate loans to a total of 10 agencies, consisting of
- Asset management company
- Bangkok Commercial Public Company Limited
- savings bank
- Krung Thai Bank Public Company Limited
- Bangkok Bank Public Company Limited
- Sukhumvit Asset Management Company Limited
- Government Housing Bank Kasikorn Bank Public Company Limited
- Siam Commercial Bank Public Company Limited
- J Asset Management Company Limited (JAM)
- National Housing Authority
There is also the National Credit Bureau Company Limited (Credit Bureau) and the Real Estate Information Center. Come join us in providing credit information services. and second-hand real estate information at this event as well.
