ADB: No sign of property bubble
- Published: 9/04/2013 at 01:58 PM
- Online news:
There is no sign of a bubble in Thailand’s property sector, Luxmon Attapich, senior economist at the Asian Development Bank’s Bangkok office, said on Tuesday.
Mrs Luxmon said the price index of residential units was not too high and that recent gains of the Stock Exchange of Thailand (SET) main index had seen the market return to normalcy.
Therefore, persistent foreign direct investment inflow would not cause an economic bubble, she added.
The economist admitted that capital inflows would strengthen the baht which could in turn erode the competitiveness of Thai exporters in the future.
The ADB felt it was unnecessary for the central bank to implement any measures to curb foreign direct investment inflow at this time, but the ADB will closely monitor the situation, she said.
Quantitative easing measures imposed by Japan would have only a minimal impact on Thailand when compared with those of the US. However, these measures could result in more capital inflow to Thailand, Mrs Luxmon said.
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