Rising property prices no cause for concern, BOT chief says

The Bank of Thailand (BOT) yesterday dismissed concerns that foreign investors have been engaging in speculative activities in the country's real-estate sector.

"To date, we have not found any speculative activity from the inflow of foreign investments," BOT Governor Prasarn Trairatvorakul said.

However, he acknowledged that real-estate prices in some areas of the country had risen quite fast lately and said the central bank was monitoring such movements.

"But the [price] rise, on this scale and at this point, is not threatening to affect the whole sector," Prasarn said.

He was speaking after some real-estate developers expressed concerns that the huge inflow of foreign currencies might be directed into the country's real-estate sector in a speculative manner and cause a market bubble.

Prasarn said the BOT welcomed opinions from all sides, including those expressed via newspapers, in trying to efficiently manage the flow of foreign investment.