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No Significant Foreign Investment in the Thai Property Market

By on Mar 18, 2011 in Investment-Land

Despite the Bank of Thailand announcing measures of decreasing LTV’s for condominium to 90% and the LTV’s for houses to 95% to cool the property market, developers still continued to acquire sites for residential projects.

There have been concerns about an influx of foreign money into Thailand. There have been significant foreign inflows into the Thai bond and stock markets but virtually no significant foreign investment into the Thai property market. In fact, we have seen the opposite with foreign groups, such as the administrator of Lehman Brothers and a fund controlled Lasalle Investment selling properties to local Thai investors.

Although the Bank of Thailand increased policy interest rate on 1st December 2010 by 25 bps to 2.0% per annum, yield for property investment did not change significantly and money is still being driven into the property market due to the low yields on other fixed income investment.

Income-producing properties are still in high demand amongst Thai investors. When income producing properties have come to the market, there have generally been multiple bidders demonstrating the continued level of demand for this type of property.

This is an extract from Thailand Investment MarketView Q4 2010, click to download the full report.

Toby has been living in Bangkok for a number of years and has a strong research background. With his years in Thailand Toby brings a wide range of property knowledge to his research writing

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