Thai property set for price increases

The Thai property market is bracing itself for price increases at the end of March after government officials decided that they would not be renewing tax breaks.

According to a report on Property Wire, the decision was made after news that the country's economy was in recovery and many developers are now running at a profit was released.

Incentives including reductions in property transfer fees and lower mortgage registration costs have helped to boost sales in 2009 by as much as seven per cent.

It will mean that the current transfer tax - set at 0.01 per cent - will rise to two per cent while mortgage registration fees will increase from 0.01 per cent to one per cent.

The news may be of interest to individuals looking to purchase property in the Asian country, who will have to move quickly to take advantage of the reduced costs.

Land & Houses, the country's largest developer, explained that the changes would result in single figure, rather than double figure growth for the coming year.

The International Valuation Standards Council recently introduced guidelines that will make the Thai property market more transparent.