1. Cross Country Experiences THAILAND Ballobh Kritayanavaj Senior Vice President G H Bank – Thailand 11 April, 2013 Housing : An Engine for Inclusive Growth

2. Population and GDP : Thailand and South Asia Countries source : IMF, World Economic Outlook Database, October 2012 Country PopulationGDP SizeGDP per capitaGDP Growth Millions U.S. dollars BillionsU.S. dollars% 2013E 2012E2013E India 1,2392,1171,7094.96.0 Pakistan 1832371,2963.73.3 Bangladesh 1521278356.1 Thailand 654136,3646.4*5.0* Afghanistan 33226685.26.5 Sri Lanka 21653,1046.86.7 1

3. GDP Growth and Housing Completions in Bangkok and Metropolitan Region 2

4. Housing Ladders Prices of New Houses Offered for Sales in BMR Market 2012 by Private Housing Developers 3

5. EFFICIENT PRIVATE HOUSING DEVELOPERS Data : REIC Graphic : GH Bank 4

6. NHAs Subsidized Low- Cost Housing Completions (2004 – 2012) Avg # 30,000 units/year 5

7. Home Loan Outstanding in Thailand 6

8. Market Share of Home Loans Outstanding

9. Residential Mortgages in the Thai Economy Items19902000201020112012 Residential Mortgage Outstanding (billion baht) 138689187320292259 All Types of Loans(AL) 19794309118021295115346 GDP at current price 21844917101041046011363 RM : AL (%) 716 15 RM : GDP (%) 6141820 Source : Bank of Thailand 7

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11. Key Elements for Efficient Housing Sector Economic growth (Sustainable – no bubble) - Job creation and employment stability Housing provision for all Income levels (inclusive, new home & resale, housing ladders, public & private, rental & ownership) National housing policy - Homeownership strategies Legislation & regulations (Urban Planning/Zoning, land subdivision control, building control, condominium laws, environmental control, consumer protection etc.) Land and infrastructure development (available - accessible) Housing finance (available - accessible – affordable ) - Low Interest rates – high LTV - long term up to 30 years) 9

12. Land & property registration and transfer system (accurate and fast) Fiscal policy (Taxation, subsidy - supportive) Investment promotion for housing developer (privilege through BOI) Labour and building materials (available – good quality) Construction technology (appropriate - innovative) Education + Training & counseling programs Statistical data & Information (Real Estate Information Center) Housing professional development ( associations – developers –home builders financiers - valuers – brokers - sellers – property managers) 10 Key Elements for Efficient Housing Sector

13. INTEGRATED HOUSING AND HOUSING FINANCE MARKET (THAILAND) Ministry of Finance Ministry of Social Development & Human Security Govt. Ministries Ministry of Interior Govt. Agencies Bank of Thailand Lands Department Dept. Public Works and Town Planning Special Financial Institutions National Housing Authority (NHA) Community Organizations Development Institute (CODI) (Regulators, Financiers, Developers, Land registrations, Investment promoter) Private Sector Professional Associations Training & Education Information & research Valuers RE Brokers Community/ Property Managers Com. Banks Finance Companies Other Financial Institutions Govt Housing Bank Govt Savings Bank SMC Universities Training Centers REICGH Bank Universities Private Medias and Research Co. www.rei c.or.th www.ghbhomecen ter.com Housing Journals (Thai) 19 yrs APHJ (Eng) 6 yrs Websites -Websites - Magazines (e.g. Home Buyer Guide etc.) - Radios Ballobh K. 20 Jan 2012 - Real estate business - Housing development Thai Condominium Assoc. Housing Business Assoc. Thai Real Estate Assoc. Thai Home Builders Assoc. Thai Valuers Assoc. Valuers Assoc. of Thailand Thai RE Brokers Assoc. Property Mangt. Assoc. - TRETS - Associatio ns Housing Finance Assoc. Mortgage Lenders RU-ABAC CU - TU - Housing developemt - Housing finance - Property Valuation - Brokerage business etc. Developers and Builders BOI 11

14. Govt s policies to promote the housing sector & economy Housing market stimulation policy Mortgage registration fee - Reducing 1% 0.01% (loan amount) Real estate transfer fee 2% 0.01% (appraised value) Specific business tax (SBT) 2% 0.01% (transaction price) First time homeownership policy - Promoting more affordable housing GH Bank first home scheme Total project loan amount : Bt 20,000 million 0% interest rate (2- 3 years) LTV up to 100% Loan amount up to 1 million Homeownership taxation policy interest from home loan is deductible for income taxation (Bt50,000 Bt100,000) Low cost housing development policy - Board of Investment (BOI) - Condominiums < 1 million - Land & house < 1.2 million - Income tax exemption for 5-8 years