TO DISCUSS YOUR PROJECT OR LEARN MORE ABOUT OUR SERVICES:

  • This field is for validation purposes and should be left unchanged.

Thai Banks Tightening Credit For Hotel And Property Sectors

Category: Real estate, Posted:16 Nov 2010 | 06:00 am

The Bank of Thailand's announcement on tightening the lending regime for end user real estate loans has triggered concern in the property sector.
With rising fears of a market bubble the Government institution has made public plans to impose new guidelines for mortgages aimed at increasing risk reserves by a significant amount.
Given that resulting costs will impact the banks a domino effect for interest rates to go up is anticipated. This is expected to subdue some of the widespread speculations in the domestic market especially for the surging supply line of entry level condos.
Some estimates place Thai property's contribution to GDP as high as 7-8%, with the contribution to the wider economy running into double digits adding the expanding contribution in household goods and related services.
Property firms listed on the SET (Stock Exchange of Thailand) have recorded a high level of dividend payments consistently in the past few years and the emerging Property Fund sector provided exceptionally strong investor returns.
Mounting concerns on possible volatility have seen lending policies at an increasing number of banks include hospitality assets such as hotels which are increasingly being viewed as risk positive given the political machinations this year and external events which impact tourism and business travel.
For now questions over consumer credit and challenges in debt formation could create a strong obstacle for businesses rolling into 2011.

Other News

Read more

Gamechanger: Phuket’s 80-Meter Development Height Restriction Repealed

Category: Hotels|Real estate, Posted:31 Dec 2024 | 11:19 am One of the most significant changes to Phuket’s real estate sector this year is the repeal of the 80-meter development height limit. In a recent Government Gazette, the Thai Cabinet approved a re-zoning proposal by the Minister of Natural Resources and Environment, which now allows development in Zone 6 of Phuket to extend up to […]
Read more

C9 Hotelworks Release Definitive Asia-wide Branded Residences Report

Category: Hotels|Real estate|Tourism, Posted:12 Dec 2024 | 08:30 am C9 Hotelworks Release Definitive Asia-wide Branded Residences Report Branded residences in Asia see record supply worth USD26.6 billion according to C9 Hotelworks new research report. The market shows a rising proportion of standalone and mixed-use developments, with a growing presence of brands beyond hospitality. The branded residences sector in Asia has achieved a record-breaking supply […]
Read more

From Spas to Longevity: Phuket Evolves into a Global Wellness Tourism Leader

Category: Hotels|Real estate|Tourism, Posted:29 Nov 2024 | 08:10 am Wellness tourism is in great shape. One of the fastest growing areas of the tourism industry, the sector has grown from a niche market for committed health seekers to become a THB 219 trillion (USD 6.3 trillion) global powerhouse. At the heart of this revolution is Asia Pacific, which accounts for 30% of the worldwide […]
SiaJai logo

Thailand's Leading Homecare Marketplace