BoT watch on housing bubble | Bangkok Post: breakingnews

BoT watch on housing bubble

Published: 5 Oct 2012 at 16.42
Online news:

The Bank of Thailand is keeping a close watch for any indication of a pending collapse in the housing bubble after prices of housing estate units recently sharply increased, Mathee Supapong, a senior director at BoT, said on Friday.

Housing loans provided by financial institutions were also substantially up and this was a case to concern, said Mr Mathee.

It is usual for the central bank to step in to oversee any unusual rises, he added.

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boons
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Discussion 4 : 06 Oct 2012 at 11.394
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Re-sales tells the whole story. There is no organic housing market.
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bluebottle
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Discussion 3 : 05 Oct 2012 at 22.153
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Demand and easy money fuel house prices.I was in Spain when the boom hit and if you could breath you could get a mortgage.Spain will be paying for that mistake for years. Do not let it happen here.The situation is precarious enough without that happening.
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khunbj
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Discussion 2 : 05 Oct 2012 at 18.492
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I do disagree with that statement, as it is now sales are brisk in the low priced housing up to say 2.5 Million, for larger housing estates they occasionally have to sell for around the same money they have in it, before they used to have a good profit, not now....but as usual if you are in a very good location then the sky is the limit for the price .... re-sale prices on houses have not been impressive for quite some time...
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BKK-boy
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Discussion 1 : 05 Oct 2012 at 17.561
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Indeed, housing estate prices sharply increased for some years already everywhere in Thailand, and this without any objective reason, apart from more profit for the developers. And still banks are giving loans easily. Is Thailand on the same track as the U.S.A., Spain, Portugal, Italy and Greece??? Will Thailand also have a bank crisis soon, when people can not pay their debts to the bank anymore? And than about the building quality: a very low price/quality. In fact buyers only get a "cardboard box" in stead of a quality house they pay for. Climate change? Insulation of buildings in order to safe energy, to increase living comforts, and to protect nature? Not in Thailand! Up to the next storm/flood, probably because of the changing climate.
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