Developers have increased launches of condominiums; many of which have been funded by new joint ventures, primarily with Japanese partners. Sales to Thai buyers have slowed in some locations and are likely to slow further with the coming imposition of tighter mortgage lending. Some developers are trying to find locations where there is real demand from Thai end-users and develop projects that buyers can afford. Others have increased their reliance on foreign sales where there is uncertainty as to who will be the final occupier.
The Bank of Thailand has recently imposed tighter regulations on mortgage lending by reducing loan to values for certain categories of purchasers in an effort to curb mortgage and property risks and improve housing loan quality. Effective from April 1 next year, second-home buyers will be restricted to a maximum loan of 80% of the property value if the first mortgage is less than three years old and for mortgages of THB 10 million and higher. Second-home buyers who have made payments on their first mortgage for three years or longer can still obtain a loan of 90% of the property value. For third and subsequent mortgages, the buyers will only be able to borrow 70% of the property value.