MORTGAGE LOAN
Mortgage loans expected to rise 10% next year
Sucheera Pinijparakarn
The Nation

BANGKOK: -- Home loans will resume growth of more than 10 per cent next year as consumers and developers are now able to manage their long-term plans as confidence in the economy is returning, according to the Housing Finance Association.

President Kitti Patpongpibul said yesterday that new housing loans in the second half of this year would begin accelerating by 10 per cent from the first half. Last quarter, new mortgages dropped 10.1 per cent.

Even though new housing loans this year are likely to be even with last year, the association believes outstanding loans this year could increase by 5-6 per cent.

The economy is probably recovering, based on the Bank of Thailand's residential price index in June against the same month last year, he added.

According to the index in June, prices for detached homes with land increased by 4.8 per cent year on year, for townhouses by 8.3 per cent, condominiums by 9.8 per cent and land by 11.1 per cent.

The junta has prepared a clear road map for shoring up the economy, which is a good beginning for the real-estate industry in laying out long-term plans, Kitti claimed.

Earlier, the industry kept plans short-term as developers were not that confident in political and economic stability.

The association expects investment by the industry will turn to long-term, and this will help support the mortgage business in the next three to five years.

The association together with Home Buyers' Guide will hold annual home and condo and credit fairs from August 21-24 at the Queen Sirikit National Convention Centre in Bangkok.

More than 300 projects will be showcased at the expo, including resale homes and non-performing residential projects from seven financial institutions and one asset-management company.

The expo this year is expected to receive a good response from customers thanks to the pick-up in consumer confidence. At the event last year, visitors applied for home loans worth Bt11.78 billion.

Source: http://www.nationmultimedia.com/business/Mortgage-loans-expected-to-rise-10-next-year-30240316.html

[thenation]2014-08-06[/thenation]

According to the index in June, prices for detached homes with land increased by 4.8 per cent year on year, for townhouses by 8.3 per cent, condominiums by 9.8 per cent and land by 11.1 per cent.

 

Record land and property prices, and everyone's scrambling to lend and borrow more money.

 

I've seen this before....not in Thailand but I've seen it before and it didn't end well where it happened.

Edited August 6, 201411 yr by ukrules

Boy am I happy I misread. I thought interest will go up 10%, but obviously it is the number of loans. 

When will i ever get used to somewhat less precise headlines? 

I just hope that these new loans don't turn bad. Good to hear that things progress. 

household debt 86% or there abouts...maybe im just stupid.. must be farang money..

Is it the same guy saying this that said tourist numbers will increase?