Thailand Slashes Property Transfer and Mortgage Fees to Boost Ailing Real Estate Sector

The decision comes amid mounting challenges for Thailand’s real estate industry, a key driver of the nation’s economy. Property developers, particularly in Greater Bangkok, have been grappling with a record-high backlog of unsold residential units—estimated at 235,000 at the end of 2024, the highest since 2018, according to the Thai Condominium Association. Sales plummeted by 37% last year, with only 53,000 units sold, a decline exacerbated by a 7.7-magnitude earthquake in Myanmar on March 28, 2025, which rattled Thailand and damaged thousands of buildings in Bangkok, collapsing one under construction leading to many lost lives and injuries. The disaster has spooked potential buyers, particularly of high-rise condominiums, further stalling an already sluggish market.

“This reduction, paired with the Bank of Thailand’s relaxed loan-to-value (LTV) measures, is expected to boost residential unit transfers by 9.7% this year,” Paopoom said in a statement. The LTV easing, announced last month, allows buyers to borrow up to 100% of a property’s value, a move intended to complement the fee cuts and accelerate market recovery. The government hopes these combined efforts will not only clear the property glut but also stimulate related industries like construction, steel, cement, and household goods.

Thailand’s property sector has faced a bumpy road in recent years. The COVID-19 pandemic dealt a severe blow, slashing tourism revenue—a lifeline for the country’s economy—and dampening demand for residential and commercial properties. Despite previous government incentives, such as fee reductions for properties under 3 million baht in 2022 and 2023, the market has struggled to regain its pre-pandemic vigor. The recent earthquake, which caused some structural damage and triggered mass safety inspections, has only deepened the sector’s woes.

Analysts see the fee cuts as a timely intervention. “The measures will lift industry sentiment and speed up transfers, especially in the 3 million to 7 million baht price range,” said Veeravat Virochpoka, an analyst at Finansia Syrus Securities. However, some experts caution that the benefits may be limited to Thai nationals, as the reduced fees initially appear to probably apply only to citizens, potentially sidelining foreign investors—a critical market segment in urban areas like Bangkok, Phuket, and Pattaya.