No signs of bubble in Thailand's property sector

BANGKOK: Top executives of the Thai Real Estate Association, Thai Condominium Association, and the Housing Business Association affirmed on Wednesday, Nov 10 that these there are no signs of bubbles in the domestic property market as reported in some media, Thai News Agency reported.

Thai Condominium Association president Thamrong Panyasakulwong said he and executives of the other associations met with Bank of Thailand (BoT) deputy governor Krirk Vanikkul to discuss reports of a possible bubble burst in the condominium business.

Thamrong told the deputy BoT chief there are no signs of bubbles in the property market as reported, and that such reports had affected potential clients’ decision to buy condominiums.

So, he asked the central bank to exempt housing units in horizontal lines such as single-detached houses if it issued a measure to prevent the bubble burst within this month.

However, the deputy BoT governor asserted if the central bank decided to issue the measure, it would cover all kinds of property.

Issara Boonyoung, president of the Housing Business Association, affirmed that there were no signs of bubbles in the property sector because demand remains close to the supply.

Currently, he said, more consumers are interested in buying condominiums.

"If the central bank wants to issue the measure to control what it considers overrapid property growth, it should target groups properties facing a bubble burst, [not those which are not facing such an event]. It should also give property developers time to adjust.

"Around 140,000 housing units have emerged annually in the past decade. At present, only 60,000 units are built annually. The latest information shows no sign of bubbles in the property sector although the number of properties transferred since early this year had reached 120,000 units compared with 157,000 units (last year)," he said. — Bernama