According to estate agent Brett Gordon, founder of Panna Capital in Hong Kong, the property market in Thailand is slowing down after a year of spectacular growth.
The Bank of Thailand's Economic Conditions Report released in January showed sales in Bangkok reached 178,128 in 2010, up from 161,240 in 2009. However on January 1 2011 the central bank raised the loan to value ratio.
The loan to value ratio for condominiums costing less than 10 million baht is now 90%, while the ratio for low rise properties will be 95%, applicable to purchase contracts dated on or after January 1, 2012.
Brett Gordon sees this as a sensible move although there are concerns being raised in a report from CB Richard Ellis that limitations on foreign ownership in Thailand could do long-term damage to the market.
This effect is already showing quite clearly in the Bangkok property market as it didn't gain any real income or have any significant property deals during the last quarter of 2010.
The report from CBRE went on to say that although there are concerns about the influx of foreign capital into Thailand the restrictions mean that the property investment market remains largely the domain of domestic buyers.
However the threat of a property bubble in the condominium market has subsided due to decreased demand and a reduction in supply.
For his part Brett Gordon sees the retail sector in Thailand as being the most interesting, in particular the small listed retails. He feels that the dominance of large listed retails in the country has reached its maximum.
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