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Sub-prime mortgage woes won't affect Thai property sector, says executive |
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BANGKOK, Jan 29 (TNA) – The sub-prime lending crisis
in the United States will not escalate to the extent that it could adversely
affect the Thai property sector and overall economy, according to an industry
executive here.
Sophon Pornchokchai, chairman of the Agency for Real Estate Affairs Co, said as
a property price estimator he believed the sub-prime mortgage problem will not
worsen to the extent that could affect the global economy, including that of
Thailand.
He was confident the US government would be able to cope with the problem since
the data showed that low-quality loans represent only 20 per cent of the total
loans in the country.
So, Mr. Sophon said, he did not want Thai people to panic about the sub-prime
lending crisis.
He said the Thai property sector would not be affected by the sub-prime mortgage
problem since most Thai people purchase houses for living, not for speculative
purposes.
The executive also believed investor confidence would be restored once the new
elected government is formed.
At the same time, a construction of new electric rail route projects would bring
about new locations for city condominiums.
"We believe condominiums to be built along the new electric rail routes will be
a key factor to the property growth of up to 10 per cent this year," he said.
Nachada Thanapat, an expert in investment in the US property market, said it is
expected the sub-prime lending woes would make property prices in the US fall
until July this year.
After that, prices would recover and increase again early next year. So, it is
appropriate to invest in the US property now, she said. (TNA)-E005
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