1. National Housing Policies and Programs Thailand

2. National Housing Policies and Programs Ballobh Kritayanavaj, Senior Vice President Government Housing Bank Thailand April 19, 2010

3. Demographics – Thailand Population – 65 million Population growth – less than 0.5 per cent per year Migration increasing urban housing needs 36 per cent – urban population GDP per capita - $US4,072

4. National Housing Policies NESDB : National Housing Policy Subcommittee 1982-1997 GH Bank + NHA + NESDB + Private sector Annual National Housing Report No comprehensive national housing policy 3 main government units implement government middle and low-income housing programs Government Housing Bank (GH Bank), National Housing Authority (NHA) and Community Development Organization Institute (CODI) Private sector provides housing from low-income to multi-million baht homes

5. New Housing Policies Cabinet approved National Housing Policy Committee – May 28, 2008 Major responsibility of NHPC – oversee formulation of comprehensive long-term national housing policy NHA and CODI play major role in housing provision for lower income groups Private housing developers play a leading role in housing development for low - middle – high income group

6. Specialized Financial Institution (SFI) – Ministry of Finance Major emphasis – lower and middle income mortgages Total Assets Bt692 billion ($US21 billion) (2009) Branches : 76 + 71 points of services Employees : 2,321 36.3 per cent of all outstanding home loans (2009) About GH Bank

7. Assuring shelter for all residents in Thailand Operates as state enterprise Rental apartments, condominium, government employee housing Currently, primarily acts as an enabler between government and private sector National Housing Authority (NHA)

8. Project to build 600,000 homes - 2005 Scaled down – currently 200,000 under construction Government subsidies granted to private sector developers Houses sold at affordable prices GH Bank and Government Savings Bank - buyer financing NHA – Baan Eur-Arthorn Project

9. Special Program : GHB’s Mortgage Interest Rates Type RateRemainder of Loan Term LTV Ordinary Customer 1 st - 2 th Year = MRR - 2.00 % = 4.50 % 3 th Year = MRR - 1.00 % = 5.50 % 4 th Year = MRR - 0.50 % = 6.00 % MRR - 0.50 = 6.00% 70% - 85% Government Pension Fund 1 st Year = 3.99 % 2 st Year = MRR – 2.25 % = 4.25% 3 th Year = MRR – 1.25 % = 5.25 % MRR – 1.25 % = 5.25 % 100% - 110% Baan Eua Arthorn 1 st Year = 3.00 % 2 st - 3 th Year = MRR – 1.50 % = 5.00% 4 th Year = MRR – 1.00 % = 5.50 % MRR – 1.00 % = 5.50 %100% Social Security member Fixed Rate 2-Year = 4.50% MRR – 1.00 % = 5.50 %80% - 90%

10. Deposit Rates Commercial Banks VS GH Bank Comparison Deposit Rates GH BANK VS Commercial Banks Type of Deposit GH BANK (%)Commercial Bank (%) Saving Account 0.750.50 Special Saving Account 1.000.50 - 1.25 Time Deposit Account 3 - Month 1.000.65 - 0.75 6 - Month 1.000.65 - 1.00 12 - Month 1.500.65 - 1.00 24 - Month 2.001.50 36 - Month 3.001.75 60 - Month 3.501.50 - 2.50 Sources : GH Bank and Bank of Thailand (BOT) as of 10 Feb 2010

11. Net Interest Margin : Commercial Banks VS GHB

12. Community Organization Development Institute (CODI) Finance slum-area communities Develops community-based savings programs and organization through co-operatives Funded from Government budget Baan Mankong program – very successful Since 2003, CODI has funded more than 77,000 households in more than 245 districts throughout Thailand

13. Well developed private-sector housing industry Provide most homes from low-income sector to multi-million dollar homes Commercial banks financing readily available – 55 per cent market share GH bank market share of home loans – 36 per cent Private-sector developers and mortgage lenders

14. Income tax exemption for developers (5-8 years) Key investment promotion conditions Housing project – minimum 50 units Condominium unit – not less than 28 sq. meters and sales price – not exceeding 1 million baht Townhouse or detached house plot – not less than 70 sq. meters and sales price – not exceeding 1.2 million baht BOI Promotional Housing Investment Policy - Thailand

16. Housing Completion in Bangkok and Metropolitan Region

17. Newly - launched Housing Units - Bangkok and Vicinity

18. New Home Loans in Thailand

19. Market Share of New Home Loans

20. Home Loans Outstanding in Thailand

21. Market Share of Home Loans Outstanding

22. Keys to future growth – policy issues Reducing housing costs (Construction Technology) Government incentive programs for the LIG (BOI) Further developing housing financing markets Developing resale housing markets (professional brokers + licensing law) Strengthening professional housing associations Statistical data and Information for a well- functioning housing market (REIC+ GH Bank journal) Housing and housing finance education for the public (Homeownership counseling services)

23. T h a n k y o u www.ghb.co.th