There is no threat of a property bubble in Thailand, according to a new report from Plus Property . The real estate services provider and consultant claims there is no sign of economic interference in the industry and demand is organic – not the result of property flipping. This is despite the fact ready-to-move condos have seen a 21 per cent jump in demand.
Lifestyle changes among the Thai people have been cited as the reason behind the changes. Properties are becoming more and more sought after as the domestic market looks to move towards homeownership and settle down. Foreign buyers are also being drawn to the condo market and have plenty of opportunities to make an extra income through holiday rental in certain locations, such Phuket.
However, investors should beware that mortgage criteria is becoming tighter in the country and the country has cut loan-to-value ratios to prevent the speculation which led to the property crash, Bangkok Post reported. The economic slowdown and household debt had led some banks to tighten criteria of their own accord, including the United Overseas Bank (UOBT).
The institution lowered its loan-to-value ratio to 80 per cent from 90 per cent for residential real estate priced at ten million baht (£212,520). Kasikornbank also tightened rates to between 75 per cent and 80 per cent from 90 per cent to 95 per cent for third-home borrowing, the newspaper revealed. TMB Bank was the third to independently cut loan-to-value rates to 70 per cent from 90-95 per cent for second mortgages and holiday homes.
Tightening lending criteria will promote market sustainability, particularly in areas of high demand like downtown Bangkok, where condominiums are dominating the market. According to the CBRE, in 1988 there were just 10,000 condominium units in Bangkok but today there are over 350,000. “With continuous supply coming onto the market, the condominium market will become even more complicated and competitive,” the CBRE wrote. However, as the market becomes more sustainable, it is expected low volume and high value will come to characterise the sector in the future.Article by +Steve Binge on behalf of Propertyshowrooms.com
ที่มา : propertyshowrooms.com
อ่านเพิ่มเติมได้ที่…Plus Property: No threat of Thai housing bubble