So The BOT has relaxed its rules on the property sector for the Loan to Value (LTV). Now the details are as follows:

• Effective date 20th Jan 2020
• First home/contract units < THB 10 mn – 100% + 10% of top-up loans
• Second home/contract – 10% (previously 20%) downpayment for those that have a first home mortgage for 2 years (previous 3 years).
• For houses/condos value > THB 10 mn – Downpayment reduced from 20% to 10%

Thoughts:

• It’ll help the real demand but the speculators are gone
• Wouldn’t be surprised to see the real estate names recover during the year, but forget about the market caps seen 2 years ago.