Limitations on foreign ownership in Thailand are preventing overseas buyers from entering the market, it has been claimed.
Bangkok, in particular, did not witness any notable deals and income through real estate during the fourth quarter of 2010, a new report from CB Richard Ellis (CBRE) has claimed.
“Although there have been concerns regarding the influx of foreign capital into Thailand, the various restrictions on foreign investment ensured the real estate investment market remained largely dominated by domestic players,” the consultancy confirmed.
Indeed, CBRE explained that the market was completely dominated by local buyers following a decision to raise the policy interest rate three times in the second half of 2010.
The Bank of Thailand also announced that it would be decreasing LTV’s for condominiums to 90 per cent and LTV’s for houses to 95 per cent.
Despite this, CBRE concluded that the moves have not had any major negative impacts on the property market, with Thailand’s major property firms even announcing dozens of new building projects for 2011.