Construction permit withdrawal sparks caution in Thai property lending

[snoop1130]

 

The property developer community has been unsettled by the recent Ashton Asoke saga, wherein the construction permit was withdrawn, prompting lenders to proceed with caution when issuing debt instruments and loans to developers.

 

AP Thailand’s chief executive, Anuphong Assavabhokhin, explained that it’s becoming increasingly challenging to secure loans as financial institutions grow wary of extending credit to real estate companies due to the consequences of the Ashton Asoke episode. Additionally, the issuance of debt instruments is also expected to become more complex.

 

Particularly detrimental could be the impact on medium-scale residential developers who have previously issued debt instruments and are close to rolling over their debts, Anuphong noted.

 

Posing a question to the industry, he suggested…

 

“If debt roll-overs cannot be executed by these developers, might we find ourselves facing a crisis similar to 1997?”

 

Several companies, to avoid bank loans, prefer to issue debt instruments. If these companies fail to secure loans and are unable to roll over these existing debt instruments, a significant crisis might be looming over the industry, suggested Anuphong.

 

By Alex Morgan

Caption: Photo by atomx from Skyscraper City

 

Full Story: https://thethaiger.com/news/business/construction-permit-withdrawal-sparks-caution-in-thai-property-lending

 

-- © Copyright Thaiger 2023-08-11

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

[retarius]

So what's the answer? Perhaps don't construction until you have all the right paperwork? Not that difficult, so stop whining and fear mongering.

[kimamey]

Isn't the problem that even if all the right paperwork is there there's no guarantee that it won't be revoked.

It seems quite common here for something to be built and then start an argument over who owns the land. May be that's to extract compensation.

Isn't there a new elevated highway next to Lumtakong reservoir that can't be used due to ownership issues? 

[rwill]

Isn't the problem that the government issues permits that should not be issued because someone makes a profit from it?

[Venom]

10 hours ago, kimamey said:

It seems quite common here for something to be built and then start an argument over who owns the land.

Well it's not the foreigner that much we know. ????

[ezzra]

Where i live in mid Sukhumvit there are 3 hotels in few hundred meters radius and 3 giant condominiums are being built as we speak, it would be a bad idea to take a hiatus from this mad dash to fill up every soi with more condominiums.