New house prices expected to rise substantially – Government Housing Bank

[snoop1130]

 

House prices in Thailand are expected to increase towards the end of this year due to the rising costs of construction materials and land, as well as the anticipated minimum wage increase promised by most parties during the election campaigning, according to Vichai Wiratkaphan, acting director of the Real Estate Information Centre (REIC) of the Government Housing Bank, adding that it will be the second major price increase in recent years.

 

He said that commercial banks and other financial institutions have, however, exercised more caution in extending mortgages to customers after the Bank of Thailand decided not to extend the relaxation of loan to value ratio (LTV), a measure used to assess lending risk before banks approve a mortgage.

 

Moreover, he said that the government measure to help debtors affected by the COVID-19 pandemic is due to expire at the end of this year, which will put additional pressure on commercial banks to be more cautious when granting new housing loans.

 

Full Story: https://www.thaipbsworld.com/new-house-prices-expected-to-rise-substantially-government-housing-bank/

 

-- © Copyright Thai PBS 2023-05-17

 

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[hotchilli]

10 hours ago, snoop1130 said:

He said that commercial banks and other financial institutions have, however, exercised more caution in extending mortgages to customers after the Bank of Thailand decided not to extend the relaxation of loan to value ratio (LTV), a measure used to assess lending risk before banks approve a mortgage

Amazing...

[loong]

14 hours ago, snoop1130 said:

House prices in Thailand are expected to increase towards the end of this year due to the rising costs of construction materials and land, as well as the anticipated minimum wage increase promised by most parties during the election campaigning

Interesting.

In most economies (as far as I am aware), house and land prices are driven by supply and demand and are not related to the actual building costs.

It amazes me how many properties are unoccupied in Thailand simply because so many cannot afford to buy or rent them at the prices being asked,

Prices should be falling, not increasing.

[John Drake]

Pretty soon, the only people who can afford to buy houses will be from the PRC.

[cncltd1973]

odd optimism. the reverse should be expected, not to mention highest interest rates in years

[RichardColeman]

If they waited until every Pattaya condo was rented out or sold before building any new properties, they'd be well into next century before pouring more concrete out

[jacko45k]

20 hours ago, John Drake said:

Pretty soon, the only people who can afford to buy houses will be from the PRC.

Have the agents started using 'For Sale' signs in Mandarin yet?

[KhunLA]

Lots of bargains out there still.   Daughter and partner just bought a condo (damn expensive), and way below their sales promo price.  Building was suppose to be finish during early covid, and their unit won't even be ready till August.  Guessing construction was stopped for quite some time.

 

Surely plenty of 2nd hand available from those buying just before covid, due to loss income, whether from employment or expected rental income.

 

Land prices have gone up, considerably (5-9X) locally, since we bought, 7 yrs ago or built (contracted), 2.5 yrs ago, and to build the same now, would probably cost 2X.  Still inexpensive here, compared to other markets.

[BritManToo]

17 hours ago, cncltd1973 said:

odd optimism. the reverse should be expected, not to mention highest interest rates in years

Current interest rate = 5.37%

Interest rate 2012 = 6.25%

Lowest interest rate 2020 = 4.75%

 

So not really the highest interest rate in years.

Not even that much difference over the years.

Edited May 19, 2023 by BritManToo

[BritManToo]

On 5/17/2023 at 7:48 PM, snoop1130 said:

Moreover, he said that the government measure to help debtors affected by the COVID-19 pandemic is due to expire at the end of this year, which will put additional pressure on commercial banks to be more cautious when granting new housing loans.

Oddly enough the government measures didn't help at all.

My mortgage is with SCB bank, when I first took out the mortgage (2012) the repayments were 10,900bht/month (@6.25%).

And they have absolutely refused to allow any change in the repayments, despite interest rates reducing to 4.75% then moving to 5.37%.

 

They still demand 10,900bht/month.

 

Edited May 19, 2023 by BritManToo