Analyst Alisa Tamprasirt from the SCB Economic Intelligence Center (EIC) told the Property Report that people should not fear a price bubble as a result of the rising prices experienced over the last four years.
"A real estate or property bubble is characterised by rapid and continued increases in valuations of real property, causing speculation. But it’s difficult to classify which demand is real and which is speculation," she explained, adding that the recent price rise in Thailand was a result of economic growth, low interest rates and high construction costs.
What's more, growth rate has stayed relatively low, at just four per cent, which is considerably lower than the 15 per cent recorded for the 1993-96 period, prior to the market crisis.
Ms Tamprasirt stated to the news portal that housing demand is currently much more stable than during the period, but, as always, caution should be shown.
According to the Global Property Guide, there has been mixed signals about the Thai market throughout the year, with the Bank of Thailand posting a drop in single detached house prices, but a rise for townhouses and condominiums.