Jun 11, 2010 - PropertyGuru.com.sg
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The President of the Agency for Real Estate Affairs in Thailand has cautioned against a possible bubble formation in the country’s property market.Dr. Sopon Pornchokchai stressed that a bubble could form in 2011 and 2012 due to the rapid construction of low-priced housing, as property developers are rushing to participate in the nation’s Board of Investment homes project. "When there is more supply, it is likely that there would be more speculation," he said.
The Royal Thai Government must not support any "unnecessary" acquisitions of second homes that could lead to speculation in the sector, he added.
He also urged buyers to manage their finances well, and lenders should be very wise with their financing, most especially in the case of projects being built in poor areas.
The Agency forecasted that the value of new home units being released during this year will be worth THB158.4 billion (US$4.84 billion), which is a 15-percent drop on the value of homes launched last year.
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Reader Comments: (2 comments)
the fear of a bubble forming in asia, with no exclusion of singapore, has been an issue even before... any progress? what is the real scenario?
every country is now fearing with a possible bubble formation.. who will be next? what about singapore, is the government soon be threatened with property bubble, esp. it announced to release bumper supply of land for sale. hhmmpp?!