Bangkok Commercial Asset Management Co., Ltd. (BAM) confirms there is still no sign of a real estate bubble, citing that NPLs in the system are below 2% and banks have tightened their loan rules.

BAM President Krit Sesavej said the real estate sector had seen continuous growth in the first quarter of this year, making it possible for the sector to surpass last year’s 30% growth in the construction of houses and condominiums. No sign of the housing bubble was detected and the number of house deed transfers was almost equal to the number of new houses, the president said.

Mr Krit added that NPLs were expected to remain low at 2% while banks had started to become more cautious with their lending as well as increase home down payment in a bid to prevent speculation. The president also played down the possibility that the Bank of Thailand might impose measures to control second-home purchasing.

-News from NNT