100% LTV and Property Fee Cuts Reignite Residential Demand

100% LTV and Extended Property Fee Cuts Set to Reignite Thailand’s Residential Demand, Says CBRE

CBRE Thailand, the leading international property consultant, notes that the relaxation of Loan-to-Value (LTV) limits combined with extended government fee cuts will serve as a key driver for the residential market in the second half of the year.

Under the policy framework, LTV caps are relaxed to 100% for a period of one year, while ownership transfer and mortgage registration fees are reduced to 0.01% through June 30, 2027. Applicable to both new and secondhand homes priced up to THB 7 million for Thai nationals, these combined measures effectively lower purchasing expenses, expand access to credit and boost confidence among both buyers and developers.

Ms. Roongrat Veeraparkkaroon, Managing Director of CBRE Thailand, stated, “The alignment of relaxed credit conditions and targeted policy relief comes at an important time for Thailand’s property sector. By directly lowering entry barriers for home buyers, these combined measures give the residential market a clear push. They help improve market liquidity, lift developer sentiment and support broader economic stability heading into the second half of 2026 and beyond.”

Elaborating on the direct impact on homebuyers, Ms. Praphinleeya Phuengkhuankhan, Head of Residential Sales and Leasing at CBRE Thailand, added, “The 100% LTV measure significantly reduces upfront costs on the purchase date. This particularly benefits first-time homebuyers, up-sizers and buyers with stable income who face savings constraints for down payments. It simplifies purchasing decisions and helps unlock pent-up demand that had previously slowed, bringing buyers back into the market.”

When paired with reduced transfer and mortgage fees, overall acquisition costs drop substantially, resulting in a lower financial burden on the transfer date. At the same time, recent downward trends in interest rates lower long-term mortgage repayments, a key factor influencing decision-making for most buyers. Together, relaxed LTV limits, fee cuts and favorable interest rate trends collectively reduce total costs for buyers across every stage of homeownership, from the initial purchase date to the transfer day and future installment payments. Consequently, qualified buyers with steady income have greater opportunities to access housing.

However, despite these supportive measures expanding homeownership opportunities, mortgage approvals remain contingent upon borrowers’ debt serviceability and creditworthiness. Financial institutions continue to apply prudent risk assessments to safeguard credit quality and mitigate non-performing loans (NPLs). As a result, prospective buyers should prepare their financial profiles and manage existing debt obligations accordingly.

From a developer’s perspective, these measures present a major opportunity to accelerate the absorption of residential inventory, particularly completed, move-in-ready projects. This will help boost transfer volume, generate immediate cash flow and bolster liquidity for property operators while the market continues its recovery. Furthermore, it enables developers to manage remaining inventory and plan future project investments with greater efficiency.

Additionally, CBRE advises individuals planning to purchase a home to establish financial discipline and consistent savings habits to enhance their financial stability and borrowing potential. This is especially vital for first-time jobbers or freelancers, who often experience irregular income streams. Demonstrating a solid savings history, verifiable income and well-managed debt will build lender confidence and increase loan approval prospects.

CBRE believes that if the government maintains continuous market stimulus alongside overall economic stability and appropriate interest rate levels, purchasing power will recover gradually, driven primarily by real-demand buyers, the main engine of the residential market.

“This is a favorable time for ready homebuyers, as they can capitalize on multiple concurrent benefits: full-value borrowing under the LTV measure, reduced transfer day expenses from government incentives and a lower long-term financial burden driven by favorable interest rate trends. Simultaneously, developers have the chance to clear inventory and improve liquidity, ultimately supporting the broader recovery of the real estate market,” Ms. Praphinleeya concluded.