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

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Real estate in Thailand: On the way to a sustainable architecture

Like in many other countries in Europe and America, in Asia, sustainability has become a new focus also for residential property developments. This is particularly an urgent move at a time when the globe is facing risks from climate change and illnesses.

Hotel sector continues to face challenges in Asia Pacific

The quarter was also marked by the partial reopening of Thailand to international visitors with the launch of the Sandbox initiative in Phuket and Koh Samui.