The real-estate industry is continuing its growth momentum, as developers have maintained their investment plans despite the political hiccups, according to the Bank of Thailand.
After meeting with seven developers yesterday for a discussion on industry trends as well as political impacts, the central bank concluded that there was yet no sign of an asset bubble. The real-estate industry now generates 5 per cent of gross domestic product.
Bank of Thailand Deputy Governor Bandid Nijathaworn said after the meeting that the industry enjoys continued expansion in line with the overall economy.
Last year, supply and demand both expanded by 9 per cent, thanks to the global economic recovery, tax incentives and commercial banks heavy lending activities. Still, as industrial growth is gradual, there is no sign of a bubble.
Despite the political unrest, no developer has revised its investment plan, but it is difficult to estimate the demand side, he said. However, demand is mostly driven by the economy's direction.
Political impacts could dull consumers’ appetite, he said.