Bank Of Thailand To Keep Close Watch On Real Estate After Seeing Signs Of Speculation

[webfact]

Central bank to keep close watch on real estate after seeing signs of speculation

BANGKOK, 3 June 2013 (NNT) - The Bank of Thailand (BoT) has detected signs of speculation in the real estate sector. The central bank says it will closely monitor the situation although there are still no factors that cause concern.

Despite the signs of speculative real estate investment, BoT Senior Director Mathee Supapongse said property demand in Bangkok and the vicinity was slowing down.

Commercial banks have approved loans for 6,011 units of residence in April, decreasing from March, as a result of the banks’ stricter loan regulations.

Condominium projects had started to slow down after they were urgently launched at the end of the last quarter, Mr Mathee said. A shortage of laborers and scarcity of land for condominium development also affected condominium growth at present.

According to the price index of residences in Bangkok and the vicinity, prices of land, single homes, and townhouses dropped in April.


-- NNT 2013-2013-06-03

[rubl]

So no need to worry. Although "signs of speculative real estate investment", "property demand in Bangkok and the vicinity slowing down", "projects had started to slow down" and "shortage of laborers and scarcity of land".

Good news. "prices of land, single homes, and townhouses dropped in April"

[patongphil]

Come on down to Phuket and see if they can "detect any signs of speculation" here!! Wow

[ramrod711]

The Bank of Thailand (BoT) has detected signs of speculation in the real estate sector.

Is Thaksin using inside information to buy up more land again?.......just curious.

[wealth]

The Bank of Thailand (BoT) has detected signs of speculation in the real estate sector.

Is Thaksin using inside information to buy up more land again?.......just curious.

HOTELS!

[waza]

Nah no sign of a real-estate bubble here.

[davejones]

Prices don't drop when there is speculative investment. Sounds more like the market is over-supplied and heading for a fall. This is generally good news, as it means that more people can afford to buy homes. This is one thing I really like about Thailand - the availability of cheap homes. It's a complete contrast to the UK, when most people, including the government, think it's great to have property become so expansive that many can't afford it.

[phosphorescent]

Bubble? What bubble? That's not a bubble, that's just erm..............eh.............a big balloon, yeah, a balloon, that's what it is!

[bkksiam]

What sorts of measures could (might) they introduce to curb speculation?

[itchybum]

Bugger.

I am about to sell up a very pricey block, cannot have a crash about now...cannae

[bigbamboo]

The Bank of Thailand (BoT) has detected signs of speculation in the real estate sector.

Is Thaksin using inside information to buy up more land again?.......just curious.

Is The Maldives still looking to buy a vast tract of land in the Pacific rim as a bolt hole in the event that their Islamic sandcastle paradise is washed away by the sea?

[anon467848]

There are Moo Bans and Condominium projects going up at an alarming rate in Chiang Mai. Where are they going to get all the buyers from... or is it just money laundering???

[jbrain]

There are Moo Bans and Condominium projects going up at an alarming rate in Chiang Mai. Where are they going to get all the buyers from... or is it just money laundering???

How do you launder money when heavy investing in some real estate that's not gonna be sold ?

That's like laundering with Vanish

Edited June 3, 2013 by jbrain

[Phronesis]

Well neversure and I have posted extensively about the property bubble here in LOS...But we were hailed down by most member as tin foil hat wearing lunies...go figure...

[Thai at Heart]

What sorts of measures could (might) they introduce to curb speculation?

Put interest rates back up?

[jbrain]

Well neversure and I have posted extensively about the property bubble here in LOS...But we were hailed down by most member as tin foil hat wearing lunies...go figure...

Did it say in the OP that there IS a property bubble?

Must re-read again I guess.

[Thai at Heart]

There are Moo Bans and Condominium projects going up at an alarming rate in Chiang Mai. Where are they going to get all the buyers from... or is it just money laundering???

How do you launder money when heavy investing in some real estate that's not gonna be sold ?

That's like laundering with Vanish

Load the expenses, pay no tax. Wash the cash on property.

[jbrain]

There are Moo Bans and Condominium projects going up at an alarming rate in Chiang Mai. Where are they going to get all the buyers from... or is it just money laundering???

How do you launder money when heavy investing in some real estate that's not gonna be sold ?

That's like laundering with Vanish

Load the expenses, pay no tax. Wash the cash on property.

But if there will be no buyer, as the poster predicts, then there is no cash .

[kimamey]

Prices don't drop when there is speculative investment. Sounds more like the market is over-supplied and heading for a fall. This is generally good news, as it means that more people can afford to buy homes. This is one thing I really like about Thailand - the availability of cheap homes. It's a complete contrast to the UK, when most people, including the government, think it's great to have property become so expansive that many can't afford it.

I think the UK is a bit different. There's not as much land and planning laws are pretty strict to stop loss of countryside

Edited June 3, 2013 by kimamey

[lungmi]

There are Moo Bans and Condominium projects going up at an alarming rate in Chiang Mai. Where are they going to get all the buyers from... or is it just money laundering???

Two months of a year Chiang Mai is inhabitable (pollution), must be a hidden agenda .

[IMA_FARANG]

I firmly believe that many of those "residence units" that are being bought are really being bought for "investments" and are actually unoccupied by the owners.

As far as I am concerned when at least half the property units sold are actually not lived in and are unoccupied by the owner, that's what I call a "speculative investment bubble".

[Thai at Heart]

There are Moo Bans and Condominium projects going up at an alarming rate in Chiang Mai. Where are they going to get all the buyers from... or is it just money laundering???

How do you launder money when heavy investing in some real estate that's not gonna be sold ?

That's like laundering with Vanish

Load the expenses, pay no tax. Wash the cash on property.

But if there will be no buyer, as the poster predicts, then there is no cash .

The buyers are washing cash.

[surangw]

If it were not for speculation, there would be very little investment.

[baboon]

There are Moo Bans and Condominium projects going up at an alarming rate in Chiang Mai. Where are they going to get all the buyers from... or is it just money laundering???

Chumphon, too. There is a big development going up. I dunno, maybe this will become the new Las Vegas or Miami?

[bigbamboo]

There are Moo Bans and Condominium projects going up at an alarming rate in Chiang Mai. Where are they going to get all the buyers from... or is it just money laundering???

Chumphon, too. There is a big development going up. I dunno, maybe this will become the new Las Vegas or Miami?

When Thaksin is El Presidente and Shin Mai is the new capital of Thailand these will look like good investments.

Edited June 3, 2013 by bigbamboo

[NeverSure]

Well neversure and I have posted extensively about the property bubble here in LOS...But we were hailed down by most member as tin foil hat wearing lunies...go figure...

Did it say in the OP that there IS a property bubble?

Must re-read again I guess.

I strongly suggest that you go out tomorrow and buy about a dozen condos for investment. You can't lose. After all, real estate always goes up, and no matter how many units are built or how many vacancies there are, and no matter how many of the units are being bought on speculation by other speculators, you can't lose. No matter how much foreign money comes in to be laundered, it would be very nice of you to help out. No matter that banks will be under water if the value of their loan collateral drops due to a drop in real estate prices, you can't lose. In fact, buy some Thai owned bank stock while you're at it.

Just remember. Real estate always goes up and never crashes. It never has, anywhere. Pay no attention to all of the signs of a bubble, and pay no attention even to news that the banks and government are concerned. You can take that to the bank.

See, I love you so much I just want to help out.

[NeverSure]

Well neversure and I have posted extensively about the property bubble here in LOS...But we were hailed down by most member as tin foil hat wearing lunies...go figure...

Many won't see it until after it happens. All you can do is warn. Even now with such news we have scoffers. And yes we have long predicted, and the time is getting closer.

[jbrain]

Well neversure and I have posted extensively about the property bubble here in LOS...But we were hailed down by most member as tin foil hat wearing lunies...go figure...

Did it say in the OP that there IS a property bubble?

Must re-read again I guess.

I strongly suggest that you go out tomorrow and buy about a dozen condos for investment. You can't lose. After all, real estate always goes up, and no matter how many units are built or how many vacancies there are, and no matter how many of the units are being bought on speculation by other speculators, you can't lose. No matter how much foreign money comes in to be laundered, it would be very nice of you to help out. No matter that banks will be under water if the value of their loan collateral drops due to a drop in real estate prices, you can't lose. In fact, buy some Thai owned bank stock while you're at it.

Just remember. Real estate always goes up and never crashes. It never has, anywhere. Pay no attention to all of the signs of a bubble, and pay no attention even to news that the banks and government are concerned. You can take that to the bank.

See, I love you so much I just want to help out.

It almost sounds as if you're sarcastic and have bad experience of such a disaster where the banks xxxxxx up big time. Where you from ?

Edited June 3, 2013 by metisdead

[rubl]

Well neversure and I have posted extensively about the property bubble here in LOS...But we were hailed down by most member as tin foil hat wearing lunies...go figure...

Did it say in the OP that there IS a property bubble?

Must re-read again I guess.

I strongly suggest that you go out tomorrow and buy about a dozen condos for investment. You can't lose. After all, real estate always goes up, and no matter how many units are built or how many vacancies there are, and no matter how many of the units are being bought on speculation by other speculators, you can't lose. No matter how much foreign money comes in to be laundered, it would be very nice of you to help out. No matter that banks will be under water if the value of their loan collateral drops due to a drop in real estate prices, you can't lose. In fact, buy some Thai owned bank stock while you're at it.

Just remember. Real estate always goes up and never crashes. It never has, anywhere. Pay no attention to all of the signs of a bubble, and pay no attention even to news that the banks and government are concerned. You can take that to the bank.

See, I love you so much I just want to help out.

It is with a certain level of reluctance that I feel I should mention to you the mere chance, the really minor hitch, the almost unimaginable minute possibility that condo's get prepaid but not build. Only on the off chance we have a crash of course. Hardly ever happens, certainly not while this government is run by knowledgeble, capable people with potential.

BTW I did notice that most of the annoyingly distracting rusty frameworks from 1997 in and around Bangkok have been removed by now. That's good. They were a real eyesore and tended to distract investors looking around.

[waza]

perhaps some canny investors have read the signs and now are looking at the government to slowly deflate the bubble to protect there investments