Bangkok: The Treasury Department has partnered with Krungthai Bank to improve the property appraisal process, aiming to close the gap between appraisal prices and loan collateral values. This initiative is expected to streamline the appraisal process, making it more accurate and reflective of market realities.
According to Thai News Agency, Deputy Minister of Finance, Mr. Paopum Rojanasakul, observed the signing ceremony of this collaboration. The agreement involves the integration of property appraisal data exchange, signed by Mr. Ekniti Nitithanprapas, Director-General of the Treasury Department, Mr. Phayon Srivanich, President of Krungthai Bank, and Mr. Witthaya Saenphakdi, Deputy Managing Director of the Government Housing Bank. This partnership aims to enhance government management standards in land price appraisal, ensuring transparency and reducing the steps involved in obtaining asset price appraisals for both land and condominiums.
The banking sector will benefit from a database that expedites housing loan considerations. Under this Memorandum of Understanding (MOU), the Treasury Department will exchange data with both banks to support property value assessments submitted for loans. This includes details like land appraisal accounts, condominium appraisal accounts, and building appraisal accounts, along with land unit information such as standard depth and appraisal prices per unit.
Krungthai Bank and the Government Housing Bank will reciprocate by providing the Treasury Department with registered purchase price information to aid in determining accurate land appraisal prices per unit. This includes appraisal prices for real estate loans used as collateral, covering land, buildings, and condominiums.
Mr. Ekniti Nitithanprapas emphasized that the Treasury Department’s VALUE strategy, particularly its fourth pillar focusing on asset appraisal, aims to improve the accuracy of land price appraisals. Collaboration with Krungthai Bank and GH Bank will provide essential data to refine the Treasury Department’s appraisal prices, aligning them more closely with local economic conditions.
Mr. Payon Srivanich highlighted the benefits of this collaboration across various sectors, including enhanced asset inspection and debtor quality, reduced costs and risks, and easier loan access for the public. Krungthai Bank has already assessed 5 million plots, creating a central database and digital mechanism to standardize property appraisal prices.
Mr. Wittaya Saenphakdee noted that this initiative represents a significant step for government agencies to utilize and integrate property appraisal data. This collaboration will improve GH Bank’s housing loan services, ensuring accurate property appraisals and supporting its sustainable goal of providing homes for Thai citizens.