"High household debt had an impact on the overall economy and property sector. The rejection rate from banks also remains high as banks are more cautious in lending due to payment default risks. A rise in debt was mainly in the middle- to lower-income segment and younger buyers, suggesting a decline in purchasing power. "We are worried that the Thai property sector will repeat what happened in Japan in the 1990s, when property prices were so high that the middle-to lower-end segment was priced out," he said. "These groups will face high debt burdens, putting pressure on long-term consumption."

Source: Bangkok Post July 10, 2017 21:45 UTC