The Bank of Thailand (BoT) has confirmed no signs of an economic bubble have been found in the Thai real estate sector and only the prices of condominiums edged up after the flood crisis last year.
BoT executive Methee Supapong said that the central bank had not found unusual signs of acceleration in real estate and both demand and supply had been in line with the market conditions. He insisted that there had been no price hike, except in condominiums in some areas, especially along the electric train lines. Prices of single houses and townhouses have not significantly increased, he said.
Regarding a possible interest rate increase by 0.35% for real estate loans at the end of this year, Supapong said commercial banks should consider increasing the interest rate on a group-by-group basis to create a balance in liquidity. The BoT executive expressed his confidence that this matter would not affect the direction of interest rates of commercial banks in the overall picture. He asserted that the commercial bank interest rates would continue to be in accord with the policy interest rate.
