The government should consider extending the property measures that expired on Dec 31, 2024 as they effectively boosted demand for residential units priced at 7 million baht or lower last year, according to the Government Housing Bank (GHB).

Kamonpop Veerapala, GHB's president, said nationwide residential transfers in the fourth quarter of 2024 rose 1.3% to 97,413 units, marking the first year-on-year growth in eight quarters.

"This growth was primarily driven by unit prices benefiting from these measures," he said. "When the incentives were about to expire, homebuyers typically accelerated transfers during the final period of the measures."

The property measures included a reduction in transfer and mortgage fees to 0.01%, down from 2% and 1%, respectively, for both new and second-hand residential units priced at 7 million baht or less.

This threshold was raised from the previous limit of 3 million baht or less, resulting in a surge of ownership transfers before the measures expired at the end of 2024.

Notably, condo ownership transfers in the fourth quarter of 2024 reached 33,361 units, an increase of 13.9%. The total value rose 5.6% to 84.4 billion baht compared to the corresponding period of 2023.

For the entire year, nationwide condo transfers increased 7.7% to 116,439 units, with those priced at 7 million baht or less leading the growth, surging by 9.1%.

In contrast, low-rise house transfers nationwide tallied 231,360 units worth over 683 billion baht, down 10.6% and 7.9%, respectively, with decreases observed across all price ranges.

Overall, nationwide residential transfers in 2024 fell 5.2% to 347,799 units, with a combined value of over 980 billion baht, down 6.3%.

The value of condo transfers nationwide only dropped 2.5% to 297 billion baht, primarily driven by units priced at 7 million baht and above, while those priced at 7 million baht or less recorded an increase of 4.9%.

Mr Kamonpop said several positive factors are expected to support the property market this year, including forecasted economic growth of 2.7%, driven by government spending, a downward trend in interest rates, low-interest rate campaigns, and a booming tourism sector.

"However, challenges such as high household debt, loan-to-value limits, and geopolitical uncertainties remain," he added. "Despite these hurdles, the number of nationwide residential transfers this year is expected to rise by 1.6%."