National Housing Policies and Programs

1
National Housing Policies and Programs Thailand
2
National Housing Policies and Programs
Ballobh Kritayanavaj, Senior Vice
President Government Housing Bank
Thailand April 19, 2010
3

• Demographics Thailand
• Population 65 million
• Population growth less than 0.5 per cent
• per year
• Migration increasing urban housing needs
• 36 per cent urban population
• GDP per capita - US4,072

4

• National Housing Policies
• NESDB National Housing Policy Subcommittee
• 1982-1997
• GH Bank NHA NESDB Private sector
• Annual National Housing Report
• No comprehensive national housing policy
• 3 main government units implement government
  middle and
• low-income housing programs
• Government Housing Bank (GH Bank), National
  Housing
• Authority (NHA) and Community Development
• Organization Institute (CODI)
• Private sector provides housing from low-income
  to
• multi-million baht homes

5

• New Housing Policies
• Cabinet approved National Housing Policy
• Committee May 28, 2008
• Major responsibility of NHPC oversee
• formulation of comprehensive
• long-term national housing policy
• NHA and CODI play major role in housing
  provision for lower income groups
• Private housing developers play a leading role
  in housing development for low - middle high
  income group

6
About GH Bank

• Specialized Financial Institution (SFI)
  Ministry of Finance
• Major emphasis lower and middle income
  mortgages
• Total Assets Bt692 billion (US21 billion)
  (2009)
• Branches 76 71 points of services
• Employees 2,321
• 36.3 per cent of all outstanding home loans
  (2009)

7
National Housing Authority (NHA)

• Assuring shelter for all residents in Thailand
• Operates as state enterprise
• Rental apartments, condominium, government
  employee housing
• Currently, primarily acts as an enabler between
  government and private sector

8
NHA Baan Eur-Arthorn Project

• Project to build 600,000 homes - 2005
• Scaled down currently 200,000 under
• construction
• Government subsidies granted to private sector
• developers
• Houses sold at affordable prices
• GH Bank and Government Savings Bank - buyer
• financing

9
Special Program GHBs Mortgage Interest Rates
Type Rate Remainder of Loan Term LTV
Ordinary Customer 1st - 2th Year MRR - 2.00 4.50 3th Year MRR - 1.00 5.50 4th Year MRR - 0.50 6.00 MRR - 0.50 6.00 70 - 85
Government Pension Fund 1st Year 3.99 2st Year MRR 2.25 4.25 3th Year MRR 1.25 5.25 MRR 1.25 5.25 100 - 110
Baan Eua Arthorn 1st Year 3.00 2st - 3th Year MRR 1.50 5.00 4th Year MRR 1.00 5.50 MRR 1.00 5.50 100
Social Security member Fixed Rate 2-Year 4.50 MRR 1.00 5.50 80 - 90
10
Deposit Rates Commercial Banks VS GH Bank
Comparison Deposit Rates GH BANK VS Commercial Banks Comparison Deposit Rates GH BANK VS Commercial Banks Comparison Deposit Rates GH BANK VS Commercial Banks
Type of Deposit GH BANK () Commercial Bank ()
Saving Account 0.75 0.50
Special Saving Account 1.00 0.50 - 1.25
Time Deposit Account    
3 - Month 1.00 0.65 - 0.75
6 - Month 1.00 0.65 - 1.00
12 - Month 1.50 0.65 - 1.00
24 - Month 2.00 1.50
36 - Month 3.00 1.75
60 - Month 3.50 1.50 - 2.50
Sources GH Bank and Bank of Thailand (BOT) as
of 10 Feb 2010
11
Net Interest Margin Commercial Banks VS GHB
12

• Community Organization Development Institute
  (CODI)
• Finance slum-area communities
• Develops community-based savings programs and
• organization through co-operatives
• Funded from Government budget
• Baan Mankong program very successful
• Since 2003, CODI has funded more than 77,000
• households in more than 245 districts
  throughout Thailand

13
Private-sector developers and mortgage lenders

• Well developed private-sector housing industry
• Provide most homes from low-income sector
• to multi-million dollar homes
• Commercial banks financing readily available
• 55 per cent market share
• GH bank market share of home loans
• 36 per cent

14

BOI Promotional Housing Investment Policy -
Thailand

• Income tax exemption for developers (5-8 years)
  
• Key investment promotion conditions
• Housing project minimum 50 units
• Condominium unit not less than 28 sq. meters
• and sales price not exceeding 1
  million baht
• Townhouse or detached house plot not less than
  70 sq. meters and sales price not exceeding 1.2
  million baht

15
(No Transcript)
16
Housing Completion in Bangkok and Metropolitan
Region
17
Newly - launched Housing Units - Bangkok and
Vicinity
18
New Home Loans in Thailand
19
Market Share of New Home Loans
20
Home Loans Outstanding in Thailand
21
Market Share of Home Loans Outstanding
22

• Keys to future growth policy issues
• Reducing housing costs (Construction
  Technology)
• Government incentive programs for the LIG (BOI)
• Further developing housing financing markets
• Developing resale housing markets
  (professional brokers licensing law)
• Strengthening professional housing associations
  
• Statistical data and Information for a well-
  functioning housing market (REIC GH Bank
  journal)
• Housing and housing finance education for the
  public
• (Homeownership counseling services)

23
T h a n k y o u
www.ghb.co.th