Is this a case of deja VU all over again? | Bangkok Post: business

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Is this a case of deja VU all over again?

Not according to the property experts, who insist the present situation does not mirror the one that helped to cause the 1997 financial crisis, although they think a little caution would not be bad

  • Published: | Viewed: 3,810 | Comments: 1
  • Newspaper section: Business
  • Writer: Kanana Katharangsiporn & Somruedi Banchongduang
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When the 1997 financial crisis broke, fingers were first pointed at the property sector, with its massive speculation and huge loan defaults, as a root cause of the financial meltdown. 

Central Bangkok is the site of many recent property projects, but experts deny there are signs of a property bubble. PATIPAT JANTHONG

In recent years, property prices have again risen sharply, and new projects can be seen virtually everywhere, prompting fresh concerns about whether bad history is going to be repeated. Virabongsa Ramangkura, chairman of the Bank of Thailand, has warned the market that the current foreign capital inflows have put the economy at risk of a bubble in both the financial and the property sectors that could burst by year-end.

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