Thai Real Estate Associations Call for 6+1 Plan, Including 60-Year Leases
Thailand’s real estate market remains in high demand across multiple segments, but as lending standards naturally tighten and development costs rise in line with a growing market, leading industry groups have put forward a “6+1” plan to keep the market accessible for homebuyers while supporting developers and reinforcing long-term market stability.
The Purpose Behind the 6+1 Plan
The three main associations in the real estate sector—the Thai Condominium Association, the Thai Real Estate Association, and the Housing Business Association—have jointly submitted a proposal containing a set of measures to the current government led by Prime Minister Charnvirakul. The proposal can be referred to as the “6 Quick Economic Stimulus Measures.”
According to Prasert Taedullayasatit, the President of the Thai Condominium Association, the “6 Quick Measures” are practical proposals structured to be implemented immediately within the limited timeframe of the caretaker government. The goal is to create a “Quick Big Win” that could help boost consumer purchasing power in the real estate market.
The “Quick Big Win” centers on reducing upfront housing costs, adjusting loan accessibility, and easing financial pressure for both buyers and developers. This includes proposals to lower transfer and mortgage fees, expand loan guarantees for individuals with unstable income, refine lending practices, and temporarily reduce property-related taxes.
Alongside the “6 Quick Measures,” the associations are also preparing a “+1 Measure” that would be proposed to the next government in 2026. This measure involves extending the current 30-year limit on residential leasehold rights to 60 years.
How the 6+1 Plan Is Structured
The “6+1” plan is divided into two parts. The first introduces measures that could create more opportunities across the housing market for buyers and developers, while the second proposes amending property-related laws for long-term benefits.
The 6 Quick Measures
The six measures are intended to achieve a “Quick Big Win” by addressing housing affordability, financing access, and consumer confidence. The plan includes the following proposed actions:
- Reduce Transfer and Mortgage Fees: Lower both transfer and mortgage fees to 0.01% for housing units priced up to 7 million Thai baht and maintain this rate through June 30, 2026, to encourage ownership transfer.
- Expand SME D-Bank (SME Development Bank) Role: Expand the Thai Credit Guarantee Corporation’s role to partially guarantee 20% of housing loans for those with unstable incomes, including freelancers, to improve their access to credit.
- Implement Risk-Based Pricing: Adopt a risk-based pricing system approach that allows banks to set interest rates according to the borrower’s risk profile, helping improve loan access for middle- to lower-income groups.
- Reduce Land and Building Tax: Lower the land and building tax by 50% for 1 to 2 years to ease the financial burden on developers and stimulate new investment in the housing market.
- Establish a "Warehouse Debt" Policy: Introduce a policy to refinance informal or high-interest debt by allowing partially paid-off homes to be used as collateral, which could alleviate household debt pressure and boost domestic purchasing power.
- Call for a Policy Rate Cut: Request the Bank of Thailand (BOT) to reduce the policy interest rate by 0.5%, lowering it from 1.5% to 1%. This is to ease interest burdens and support investment in the real estate sector, which also directly affects consumption and the debenture market.
The +1 Measure: Extending Leasehold Rights to 60 Years
In addition to the six measures, the associations plan to propose a “+1 Measure” to the new government in 2026, which would extend residential leasehold rights from 30 years to 60 years by amending the Act on Real Estate Lease with the Right of Purchase, or an equivalent property-related law.
The proposal focuses on expanding long-term housing options for individuals who may not be able to purchase property, including those with limited access to credit, as the longer lease period would offer an alternative route to secure housing through a “rent instead of buy” structure.
At the same time, the longer lease term could attract foreign investors, which would result in increased tax revenue that the government could use to establish a fund supporting housing for vulnerable Thai residents without drawing from the state budget.
Government and Industry Response Moving Forward
The “6+1” plan represents a coordinated policy push from leading real estate associations to further strengthen the sector through immediate and longer-term reform. Their proposals highlight their shared interest in improving market confidence, expanding housing accessibility, and supporting continued development in the property sector.
Looking ahead, the progression of these measures will depend on the government’s evaluation and how public agencies and financial institutions respond. Whether it be through reduced fees, revised lending frameworks, or extended leasehold rights, the “6+1” plan serves as a model for balancing short-term market advancement with long-term market stability.
We are keeping an eye on the situation to see if there are any opportunities for our buyers. Always count on Sunway Estates to keep up-to-date on the changing real estate landscape.