Bangkok real estate ‘heading for bubble’

Bangkok real estate ‘heading for bubble’ –, July 29, 2011
…He said entrepreneurs are confident in the country’s economic expansion. But he warned that if the economy slows in 2013 because of political factors or increased foreign competition, or both, buyers may not be able to keep up with payments on their property.
In addition, he pointed out, the higher supply of real estate and the atmosphere of bullishness could lead to rising competition among banks in the home loan sector, which in turn could lead to increasing amounts of bad debt or non-performing loans.
He added another disturbing factor is that real estate purchases nowadays “are mostly speculative”, especially for condominiums selling for less than B1 million…

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