PROPERTY BODIES WANT REVISION OF BOI TAX BENEFITS

       Three property associations have asked the Industry Ministry to revise Board of Investment tax privileges granted to low-cost residential projects, because it is bringing housing prices down 4-5 per cent.
       The proposal was made yesterday to Industry Minister Charnchai Chairungrueng as he presided over the opening of the 21st House & Condo Show, which runs until Sunday at the Queen Sirikit National Convention Centre in Bangkok.
       Thai Condominium Association president Atip Bijanonda said the Thai Real Estate Association, the Thai Condominium Association and the Business Housing Association (BHA) want the BOI to reconsider its revised tax privileges implemented on June 10.
       He said the BOI was encouraged to consider four points.
       First, the tax benefit should be extended to property developers nationwide instead of only those in the greater Bangkok area.
       Second, the per-unit price making developers eligible for the privilege should be revised.
       Under present regulations, condominium projects that receive the tax break should sell each unit - no smaller than 28 square metres in size - at no more than Bt1 million, and a project should feature at least 50 units.
       Low-rise residential projects receive a tax break if each unit is sold at no more than Bt1.2 million, up from Bt600,000 a unit previously, with total space of no less than 70 square metres a unit.
       The associations want the BOI to let condominium developers sell 28-square-metre units for Bt1.2 million and still receive a tax break.
       Third is the revision of the condition of a condo project having at least 50 units priced at Bt1 million each in order to be eligible. The associations want the BOI to allow them to have a section in the project that can be sold for more than Bt1 million per unit.
       Finally, the associations want condominium developers to be able to apply for tax benefits while the project is being constructed instead of having to wait until it has been completed.
       Charnchai said the government would consider the proposal, provided it helped low-income earners buy their own homes.
       BHA president Issara Boonyong said the associations would meet with the Secondary Mortgage Corp (SMC) next Tuesday to discuss how developers could help buyers get a mortgage from SMC.
       Meanwhile, there are quite a few deals being offered at the House & Condo Show.
       A quick survey by Nation reporters showed most commercial banks at the fair were offering attractive mortgage schemes, such as zero interest for three to seven months.
       Siam Commercial Bank offers the best deal with zero interest for the first seven months, and then a choice of the minimum retail rate of minus 0.75 per cent, minus 1 per cent or minus 0.5 per cent.
       Apart from this, property firms are also giving away special deals, such as Sansiri offering half off on the down payment and zero interest for the first year and Bangkok House Builder cutting prices by Bt350,000.