By Shabnam Muzammil:
With the continuous increase of property prices in some areas, the Bank of Thailand instructed commercial banks to maintain their mortgage loan standards while avoiding loan competition, according to its governor Prasarn Trairatvorakul.
Commercial banks have tightened property loan approvals, due to mounting concerns of a property price bubble.
Among them is SCB, Thailand’s biggest mortgage loan provider. To prevent speculation, SCB has stopped offering zero-rate mortgages to the public, CIMB Thai Bank has become more careful in extending mortgage loans, and Kasikornbank ceased providing loans to risky assets.
However, Jones Lang LaSalle has slammed the caution, adding that “there have been no clear signs of a bubble in Bangkok’s condominium market so far,” said Suphin Mechuchep, the company’s managing director.
“Despite no signs of a property bubble compared to the 1997 crisis, we are closely monitoring the situation amid market concerns and warnings from the central bank.”
Shabnam Muzammil, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email shabnam@allproperty.com.sg
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