Property stocks traded lower at the end of the afternoon session, leading to a loss on Monday after Thailand’s central bank announced that it will not extend loan-to-value (LTV) measures for the property sector, according to the statement from assistant governor Chayawadee Chai-Anant.
The central bank last year raised the ratio limit for borrowers beyond 100% from a maximum of 70-90% in an attempt to spur activity in the real estate sector. The current measure will end on December 31, 2022. The measure was first announced on October 20, 2021.
The central bank noted that the property sector has made good recovery from the Covid-19 period, along with a good labour market in the sector as well as related businesses.
Some of the property stocks performed well during this period that the measure took effect, while some were slightly underperformed.
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– 28 Oct 22