Random Thoughts: Property stimulus, Digital TV
Given that last week’s email didn’t go out, here’s the link to last week’s Random Thoughts: ADVANC, Pattaya/Utapao, Indonesia
Property Stimulus:
While I doubt there will be a huge positive impact from this stimulus measure, it’s still worth noting a few things:
- The cabinet has approved property stimulus measures to help boost the economy. Some measures will be in effect for 6 months and other until end-2016
- The measures include (i) reduction in transfer fee and mortgage registration fee to 0.01% from 2.0% and 1.0% respectively, (ii) tax allowance for homes priced less than Bt3m for first-time home buyers, and (iii) the GHB’s relaxation on mortgage loan approval criteria to help low-income earners. The 2% transfer fee is normally equally shared by developers and home buyers. This means tax savings of 1% each. The 1% mortgage registration fee is paid by home buyers who take mortgage financing. Buyers of homes priced less than Bt3m are eligible to utilise 20% of the price to be deducted from their taxable income (spread into five years).
- Positive implication as the measures should help speed up transfer during the period. The magnitude of the impact varies. Those companies with lower end products ready for transfer within 2016 would see greater benefit
- Which companies may benefit? LPN, PS, SIRI and SPALI are the names touted by brokers but the estimated max impact is only at about 1-2% next year
Digital TV – It’s now into its 3rd year and there are still issues, and now the NBTC has come out to say:
- 90% coverage by May ’16
- And to provide an additional 11.99 million vouchers, worth THB 150 mn to help more households go from analog to digital TV.
- Herein lies the issue with Digital TV thus far, there aren’t enough eyeballs on it, hence why ad rates are still rubbish relative to expectations, so if (and its a big if) the NBTC can actually ensure that another 12 mn households then you can expect to see WORK, RS and GRAMMY actually start to earn better ad rates, but this could still be years away…