The policy rate for Q1 2020 is 0.75% based on the announcement of a second reduction in March. However, the Bank of Thailand cut the policy rate for the third time in May 2020 to a record low of 0.5% with the intention to stimulate recovery in response to COVID-19. The Bank of Thailand has also lowered its 2020 GDP forecasts to contract by 5.3% this year.
The collection of new Land and Building taxes has been postponed to August 2020, and the Treasury Department has also postponed the implementation of new government appraised values to 2021. Due to the delay of new government appraised values, the 2020 Land and Building Tax collection structure will be based on the new act while using existing government appraised values.
Land acquisition remained limited in Q1 2020 as developers put new launches on hold and and focused on clearing unsold inventory, resulting in a total of only two transactions in this quarter. The first land transaction was the acquisition by Redfynn Development Company Limited of a 0-3-76 rai (0.15 hectare or 0.37 acres) plot on New Petchaburi road with a total price of THB 365 million or equivalent to approximately THB 970,744 per square wah.