Thailand’s banks are become more selective when granting finance to property developers, especially those whose projects are located close to the mass transit networks where there is risk of oversupply.
Apinant Klewpatinond, President and Chairman of Commercial Banking Business at Kiatnakin Bank, said his bank has a more stringent approval process for condominium projects, which usually bear more risk than low-rise housing.
Most local banks also look into strict considerations in approving loans, such as the developer’s expertise as well as the location and type of the project. Also, banks are now keener on developers listed on the Stock Exchange of Thailand (SET).
Metha Chakrabutrnimit, Managing Director at Baan Monthon Property Plc (BMP), said: “Developers want to open condos located along the skytrain or subway routes, but banks are worried they are oversupplied.”
Recently, the unlisted developer’s loan applications for its projects were turned down, but despite this setback the company remains bullish on the demand for these condo projects.
The firm is now keen to list on the SET to raise funds and increase its capital to around THB700 to THB800 million. BPM has appointed Capital Link as financial adviser for the listing.
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@allproperty.com.sg
Recent stories you may have missed:
Ultra luxury project set for Hua Hin
Signs of bubble trouble in Bangkok
Sharp rise in Bangkok land prices
Distressed Phuket villas for sale