Thai property market steady but concerns about high end speculation in Bangkok
Changes to deposit protection limits on bank accounts in Thailand may give a boost to property investments even as there are warnings of speculation at the high end of the market for condominiums.
In early April the Governor of the Bank of Thailand issued a warning about the potential of bubbles developing in some parts of the Thai economy and referred to the property market. Some observers within the industry believe that worries over this are confined to the premium end of the property market particularly high end condominiums in Bangkok.
The comments come as it was revealed by the Bank of Thailand Governor Veerathai Santiprabhob that the bank is closely watching the flow of deposits from bank accounts to instruments offering a higher return or high risk funds. He said some of these funds were being invested in certain real estate sectors. The bank governor indicated that there was a concern that bubbles may form in some parts of the Thai economy.