Property Sector Reacts Poorly on Thai Gov’t Stimulus Measure to Reduce Transfer Fees

Share prices of property developers in Thailand saw slight movement in the morning session on Wednesday, which could imply the market’s disappointment in the government’s measure recently announced yesterday that aims to boost the property sector.


As of 11:00 BKK time on Wednesday, the share price of AP (Thailand) Public Company Limited (SET: AP) slipped 0.88% to THB11.30 per share. Meanwhile, Supalai Public Company Limited (SET: SPALI) fell 0.54% to THB18.40 per share and Pruksa Holding Public Company Limited (SET: PSH) dropped 0.83% to THB12.00 a piece.

On the other hand, the share price of Ananda Development Public Company Limited (SET: ANAN) rose 1.32% to THB0.07 per share. Origin Property Public Company Limited (SET: ORI) gained 0.59% to THB8.50 per share. Sansiri Public Company Limited (SET: SIRI) edged 0.57% higher to THB1.77 per share.

Meanwhile, Britania Public Company Limited (SET: BRI) and L.P.N. Development Public Company Limited (SET: LPN) were flat at THB8.50 and THB3.88 per share, respectively.

The Thai stock market is trading relatively flat in a narrow range.


Yesterday, the government announced that it will extend the reduction of property fees for another year for houses and condominiums at a price not exceeding 3 million baht.


KGI Securities stated that it had a neutral view on the measure, saying that there should be greater impact if the government raises the maximum price eligible for the fee reduction to 5 million baht, while the best-case scenario is the relaxation of LTV measure to 100% across the board.

Under KGI’s current estimates, earnings should decline 8% YoY in 2023 and rebound slightly by 4% in 2024.

Still, KGI rated “Outperform” on SPALI (TP Bt21.40), AP (TP Bt14.00) and PSH (TP Bt14.60), but maintained a Neutral rating for the sector.