Despite the Bank of Thailand announcing measures of decreasing LTV’s for condominium to 90% and the LTV’s for houses to 95% to cool the property market, developers still continued to acquire sites for residential projects.

04e95c76investThere have been concerns about an influx of foreign money into Thailand.

There have been significant foreign inflows into the Thai bond and stock markets but virtually no significant foreign investment into the Thai property market. In fact, we have seen the opposite with foreign groups, such as the administrator of Lehman Brothers and a fund controlled Lasalle Investment selling properties to local Thai investors.

Although the Bank of Thailand increased policy interest rate on 1st December 2010 by 25 bps to 2.0% per annum, yield for property investment did not change significantly and money is still being driven into the property market due to the low yields on other fixed income investment.

Income-producing properties are still in high demand amongst Thai investors. When income producing properties have come to the market, there have generally been multiple bidders demonstrating the continued level of demand for this type of property.

This is an extract from Thailand Investment MarketView Q4 2010, click to download the full report.

 

Follow this link:
No Significant Foreign Investment in the Thai Property Market

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

A short Guide to Taxation in Thailand

If the land or building is left empty or unused for a period of more than three consecutive years, it will be subject to an additional rate of 0.3% every three years, but the amount will not exceed 3%.

Chinese investors eye Thai property as travel resume between the two countries

According to data from Thailand’s Real Estate Information Centre, Chinese buyers have been the largest group of foreign buyers of condominium units in Thailand since 2018, accounting for almost half of the units sold to foreigners.