Kittiratt believes Thailand will not face real estate bubble

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Kittiratt believes Thailand will not face real estate bubble



BANGKOK, 28 September 2013 (NNT) – The Finance Minister has expressed his confidence that Thailand will not be faced with real estate bubble, believes banks have plans to cope with the situation.

After preside over the opening ceremony of GH Bank Expo held at IMPACT Muangthong Thani, Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said despite the country’s economic slowdown, the real estate industry is still expanding as the number of houses is increasing constantly, adding that more people living in the capital want a condominium or an apartment located where they can commute easily by public transport.

He went on to say that the real estate sector will not experience an economic bubble, citing commercial banks’ strong policies as one of the factors that will help stabilize the industry.

He said the banks are very careful before they issue a real estate loan, while most borrowers usually realize their affordability. All of these factors in the mechanism convinced him that chances of a real estate bubble are very slim, he added.


-- NNT 2013-09-28

[Patje]

Why is it when I read such comments from people who are in charge, like with the flood, the oil spill, the rice pledge, the airport....... I not believe them anymore, they have told the public so many BS, that there is enough to export meanwhile ..... Thailand nr 1 in export BS !!!!

[robblok]

He is the guy that lied about stuff to make Thailand look good and when caught he said it was to keep people confident. So I for one do not trust what he says.

[kotsak]

"..believes banks have plans to cope with the situation."

beilef can be far away from certainty..

[Thait Spot]

Closer to witchcraft than economic discipline

Sent from my Nexus 4 using Thaivisa Connect Thailand mobile app

[Redhawk]

Believing is seeing!

[clockman]

I think this one way of laundering the drug money!

[noitom]

He believes.

[WitawatWatawit]

Kittirat only needs to tour the Pattaya region to realise the hollowness of his words. Buildings going up everywhere, completed projects sitting empty. Vast numbers of them. In my mooban, 10% of the houses are for sale and have been for a very long time, while a dozen or more houses for rent are gathering dust. Kittirat gives far too much credibility to the banks, which have the history to prove him wrong (1997, Mr K?)

[robblok]

"The finance minister needs to |lie sometimes to create good feelings. The world knows this as a 'white lie'. As leader of |the government's economic team, I'm allowed to tell white lies.

this is what he has said in the past.

[siampolee]

As an aside it was reported yesterday that the Thai banking sector has adequate liquidity to ensure Thailand's financial stability !!

Now when I hear comments like this followed up by the current comments from Kittiratt concerning the property sector I am inclined to start sniffing the air to see if I can scent the distinct effluvia of a long deceased rat.

Seems almost like an echo from the events leading up to the 1997 crash.

[PattayaPhom]

Kittirat only needs to tour the Pattaya region to realise the hollowness of his words. Buildings going up everywhere, completed projects sitting empty. Vast numbers of them. In my mooban, 10% of the houses are for sale and have been for a very long time, while a dozen or more houses for rent are gathering dust. Kittirat gives far too much credibility to the banks, which have the history to prove him wrong (1997, Mr K?)

Well, I have customers waiting for rental properties but just cant find them.........of course there are plenty of overpriced rubbish in the wrong location but beach side of Suk is a different story

[itchybum]

Isn't there are song along the lines of 'I believe pigs can fly'

That whole article wreaks of a muppet told what to say by either his loyal spirits or his development company inlaws...

[Thai at Heart]

Tell you what. This country is the land of milk and honey. Never a problem, never a blip.

Amazing Thailand.

[ggold]

"..believes banks have plans to cope with the situation."

beilef can be far away from certainty..

indeed, you just need to look on the banks repossessed property lists to see how right he is!

[WitawatWatawit]

Kittirat only needs to tour the Pattaya region to realise the hollowness of his words. Buildings going up everywhere, completed projects sitting empty. Vast numbers of them. In my mooban, 10% of the houses are for sale and have been for a very long time, while a dozen or more houses for rent are gathering dust. Kittirat gives far too much credibility to the banks, which have the history to prove him wrong (1997, Mr K?)

Well, I have customers waiting for rental properties but just cant find them.........of course there are plenty of overpriced rubbish in the wrong location but beach side of Suk is a different story

Fair enough, but hardly relevant to the overall picture.

[Robby nz]

Just how good the banks liquidity is could be open for debate.

What with normal domestic lending including NPL's and the 350 billion they have lent the govt for the flood scheme and now they are going to be expected to lend the bulk if not all of the 2.2 trillion when that is forced through they must be getting fairly close to the bottom of the money bag.

[bigbamboo]

So a real estate bubble is on the way then.

[Thai at Heart]

Believes.

Not a statement I like to hear from central bankers. Predict or know, would be a lot more reassuring. I believe that man u will win today, but then , that doesn't have the financial future of a whole nation riding on that belief....

[nong38]

The Banks have plans, it works like this, if you dont keep up your payments, the Bank will chuck you out and own the property, simple really works all over the world.

Near me I see lots of empty properties, all got True dishes on the house and several air cons, the gardens are now going back to nature and all the trucks and cars that adorned the property well I wonder where they have gone, back to the supplier I guess.

Nothing comes free but Thailand wants it all and it wants it now without a thought as to how its going to be paid for, they could not wait and get things a bit at a time, well the Banks wont worry it a good deal for them, get a few payments and soon the property and the land.

[tingtongfarang]

Translated = it might go tits up and we may have another 1997 asia finacial crisis instigated once again by thailand.

[Gomyway]

The only truth is when politicians talk about things like this we're already across the border.

But what I ask myself is what's about the big shadow banking system here in LoS?

[Norabone]

Watch the exchange rate. It's usually a good barometer as to the financial status of the country.

[bkkgriz]

Ah, the man of white lies speaks. Expect a bubble burst within the next 6 to 8 months then. I am no expert on real estate, but I am starting to become an expert on PTP politicians. Whatever they say won't happen will and vice versa.

[pomchop]

Is there any country on the planet that at one time or another hasn't had a real estate bubble come crashing down right about the time that a bunch of bankers/economists/experts claim that it will not happen? Some might call it a MARKET CORRECTION when the supply exceeds the demand primarily because the prices have risen too quickly and the market is filled with speculators hoping to flip properties for a quick buck/baht.

[thhMan]

Kittirat only needs to tour the Pattaya region to realise the hollowness of his words. Buildings going up everywhere, completed projects sitting empty. Vast numbers of them. In my mooban, 10% of the houses are for sale and have been for a very long time, while a dozen or more houses for rent are gathering dust. Kittirat gives far too much credibility to the banks, which have the history to prove him wrong (1997, Mr K?)

Well, I have customers waiting for rental properties but just cant find them.........of course there are plenty of overpriced rubbish in the wrong location but beach side of Suk is a different story

I find any dealings with the beach side is just a pain... The other side where I am, things tend to be more peaceful and fair. If I get pulled up, its usually the cops doing a good job and checking for illegal things... On the beach side, they will tend to pull up farang most times. There are a lot more vacant homes on the non-beach side.... I have an entire village next door that has never had a single occupant in it.

[notmyself]

So a real estate bubble is on the way then.

It is indeed a sad and sorry state of affairs when you can pretty much guarantee the truth is the exact opposite of what is being said.

[little mary sunshine]

What a joke.....Give it 36-48 more months. Every Soi and vacant piece of land is being developed

with thousands of new shoe box condos. Half are already empty, and the new developments can't

sell 75% of what is built already. When you see hours of advertising, free gifts and price reductions

the bubble is starting to burst already.

[catweazle]

I believe I can fly...

[Thai at Heart]

Is there any country on the planet that at one time or another hasn't had a real estate bubble come crashing down right about the time that a bunch of bankers/economists/experts claim that it will not happen? Some might call it a MARKET CORRECTION when the supply exceeds the demand primarily because the prices have risen too quickly and the market is filled with speculators hoping to flip properties for a quick buck/baht.

The market will be obeyed. No way around it.....