By Andrew Batt:
The
Bank of Thailand does not believe it needs to tighten lending criteria
for property loans although it has acknowledged a rapid increase in the
prices of condominiums.
Deputy Governor Krirk Vanikkul said
yesterday the jump in prices over the past three months was confined to
specific locations and does not warrant central bank action.
"We
won’t take any action if damages are to specific developers. We’ll do so
only if we observe the possibility of systemic risk," he told The Bangkok Post.
The
Bank of Thailand could tighten property lending by increasing the
capital requirement for bank loans. In 2009 it ruled that mortgages for
condominiums could be no more than 90 percent of the total unit price.
On
October 6 the Singapore government introduced new measures aimed at
curbing speculation in the property market. Mortgages can only span a
maximum of 35 years, and borrowers wanting loans spanning more than 30
years or beyond their retirement age can only borrow a maximum of 60
percent of the property price.
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