BANGKOK, 5 October 2018 (NNT) The Bank of Thailand (BoT) has prepared measures to protect against a real estate bubble expected to be announced on January 1, 2019.

Director of Financial System Stability for the BoT, Sakkapop Phanyanukul, revealed that the measures will focus on loans for a second home and homes worth over 10 million baht. They will include requiring home buyers to pay a down payment worth 20 percent of the security for their home, up from a current requirement of 5 to 10 percent. Financial institutions, meanwhile, will be limited to offering loans based on the amount of credit they have already provided under the same security rules.

The measures are intended to maintain appropriate real estate prices and reduce risks. They will also encourage real estate developers to plan their projects properly, reducing the possibility of a bubble.

A meeting to hear feedback from financial institutions will take place this October 11 with opinions to be received via until October 22. The regulations will be announced in November before they take effect starting 2019 and apply to both new loans and refinancing.

National News Bureau Of Thailand | BoT issuing new rules to protect against a real estate bubble