Real estate value to rise by 6%-10% in 2010

Real estate

The Siam Commercial Bank (SCB) will organize SCB Home Loan Expo 2009 in response to the expected increasing price of real estate in 2010 by 6%-10%.

Siam Commercial Bank EVP Rungruang Sukkirdkijpiboon said that the price of real estate in 2010 was likely to climb more than usual by 6%-10% per year, as influenced by the project postponement from the real estate entrepreneurs, especially from small entrepreneurs. He forecast that the real estate’s interest rate would continue to go up, adding that the expired projects would not get the renewal of its contract which resulted in the increasing construction material prices. According to this, the price of real estate would rise in the same direction by next year.

SCB is to organize “SCB Home Loan Expo 2009”, offering 0% of annual interest rate for customers who bought homes via loans all over Thailand. Mr Rungruang expected that 55 billion baht of loan leasing had been targeted within 2010.

Mr Rungruang Sukkirdkijpiboon reported that there were 40 billion Baht of SCB’s loan leasing which had already been released to customers in the past 9 months while anticipating 15-20 billion baht more in the 4th quarter of this year.

Besides, he cited that Non Performing Loans (NPL) would so far be in the down trend despite the slow down of the economy which he believed that the customers still could pay debts to their full extent.

SCB expected that NPLs in terms of loan leasing, at present, would be lower than 2.5%, compared to the previous 9 months when NPLs were in the range of 2.6%-2.7% as reported. (NNT)