Central bank to control second-hand property transactions
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Bank of Thailand is mulling measures to control the spike in asset prices, having the second-hand properties in focus.
Governor Prasarn Trairatvorakul said on Tuesday that the central bank is drawing up the rule on compulsory downpayment for second-hand property purchases.
The loan to value (LTV) ratio could be raised, which will limit the amount of loans banks can lend for second-hand home purchases.
At present, the LTV ratios for condominium and house purchases are 90 and 95 per cent, respectively, meaning that borrowers need to put up downpayment of 10 per cent and 5 per cent of purchase value.
