Category: The Bangkok Post

Thailand’s residential property sector is grappling with a severe credit crunch, as mortgage rejection rates have surged to an unprecedented 80% this year, up sharply from around 30% during the pandemic, according to developers.

This alarming figure underscores a deepening crisis that is suppressing both home ownership and developer growth. The soaring rejection rate has created a dual shock within the market.

On one side, a generation of prospective buyers is being locked out of home ownership. On the other, listed developers are facing a sharp downturn, with transfer volumes and revenue not only missing targets by a wide margin, but also plunging year-on-year.

Q: WHY ARE MORTGAGE REJECTION RATES SURGING?

In general, the surge in mortgage rejection rates stems from two key factors: borrowers’ lack of financial readiness and banks’ increasingly stringent lending criteria, both of which are linked to the slowing economy and Thailand’s mounting level of household debt.

One of the most significant issues is prospective borrowers’ high debt burden, particularly when it comes to household debt.

Household debt climbed to more than 90% of GDP in 2022, well above the Bank of Thailand’s comfort zone.

Although the ratio eased slightly to 86.8% of GDP in the second quarter of 2025, banks have maintained tight lending standards, making mortgage approval more difficult.

Another major factor is poor credit history, as many mortgage applicants remain on credit blacklists due to late payments, loan defaults, or existing non-performing loans (NPLs), reducing their creditworthiness in the eyes of prospective lenders.

Applicants with unclear or unstable sources of income also face significant challenges. Freelancers and self-employed individuals with fluctuating earnings are subject to more stringent scrutiny, as banks require steady, verifiable income streams.

Other contributing factors include incomplete borrower qualifications, such as insufficient income, employment history, or the prospective borrower’s age not aligning with the repayment term.

There are also problems with collateral valuation, including appraisal values falling below the purchase price or legal complications surrounding the property.

In some cases, homebuyers take on new debt after passing the bank’s preliminary loan screening, mistakenly believing their mortgage has already been approved, even though the official transfer date has yet to arrive.

While waiting for the transfer, they begin making new financial commitments on the assumption that their loan has already been secured.

Some may use their credit cards for large purchases, take out personal loans to furnish their future home, or even finance a new car in preparation for their move.

These additional debts, though often unintentional, can significantly alter their credit profile and repayment capacity within just a few months.

When the bank rechecks their financial status just before the transfer, it often finds newly incurred debts, causing their debt service ratio to exceed the limit.

As a result, the mortgage application is rejected at the final hurdle, leaving prospective buyers unable to complete the transfer despite coming close to owning a home.

Q: WHY HAVE REJECTION RATES SOARED IN 2025?

The sharp uptick in mortgage rejections this year can be attributed to factors beyond prospective borrowers’ personal financial issues, said Surachet Kongcheep, head of research and consultancy at property consultancy Cushman and Wakefield Thailand.

While most people assume rejected mortgage applications are due to a prospective borrower’s poor credit record or excessive personal debt, banks today are digging deeper into applicants’ backgrounds and their finances, he said.

“Even if a homebuyer has no history of bad credit, has never defaulted on personal loans, or never financed high-value items, financial institutions are now assessing risks beyond the individual level,” said Mr Surachet.

A key change in lending practices is banks increasingly consider the financial health of an applicant’s employer or their business sector.

“Banks may look at whether the company or organisation the borrower works for is financially sound, or whether it belongs to a business sector under economic strain,” he said.

“If the employer operates in a high-risk or declining industry — often termed a sunset industry — that can negatively affect the borrower’s credit evaluation, even if their salary and debt record are solid.”

In some cases, the bank’s decision is influenced by the payment behaviour of other employees within the same organisation.

“If a financial institution finds employees in the same company have existing debts — whether that’s a mortgage or personal loan — or have fallen behind on repayments, it may regard the company as a higher-risk employer,” said Mr Surachet.

“As a result, even a new borrower from that organisation who personally has no financial issues could still be rejected.”

This broader, more cautious approach stems from banks’ determination to avoid a new wave of NPLs.

During property cycles in the past, institutions that approved loans too liberally later suffered heavy losses, especially when the value of collateralised assets sank.

“Although property assets are used as collateral, they rarely cover the full value of the loan once repossessed,” he said. “When banks are forced to sell non-performing assets in bulk, they almost always have to offer steep discounts, resulting in losses that outweigh the collateral value.”

Because of this, financial institutions are now enforcing stricter due diligence when scrutinising loan approvals, extending beyond the borrower’s credit history to include their employment stability, industry outlook, and even the repayment behaviour of their peers, said Mr Surachet.

“Banks simply do not want to take chances,” he said. “Their goal is to prevent bad debt before it happens.”

Authorities have seized 4.4 million methamphetamine pills and arrested two suspected smugglers near the Chiang Rai-Myanmar border.

Police said on Saturday that the two suspects were natives of Mae Fah Luang district in the northern province. They were identified only as 41-year-old Sira and 34-year-old Seri.

Officers located the smugglers on Friday after receiving intelligence that traffickers were moving their products through the border district of Chiang Saen.

When police manning a checkpoint signalled the suspects’ Isuzu pickup truck to stop, they tried to speed away but were soon stopped on the roadside.

Twenty-four straw sacks were found in their vehicle, all containing speed pills.

The drugs have been taken as evidence, and investigations are ongoing to track others involved in the smuggling operation.

A man hurled a ping-pong bomb inside a shopping mall before robbing a gold shop in the Bang Phli area of Samut Prakan on Saturday afternoon, making off with gold ornaments worth about 1.3 million baht.

The dramatic robbery occurred at about 2.30pm when the lone robber created chaos inside the Lotus City Park mall to gain access to the Yaowarat Krungthep gold shop branch. He jumped over the counter and swiftly seized gold ornaments before fleeing the scene on a motorcycle.

The stolen gold ornaments totalled about 20 baht-weight (300 grammes), worth 1.3 million baht at current prices. Local gold prices have risen by about 55% since the start of 2025.

Police arrived at the scene shortly after the incident and examined surveillance footage from the mall, which captured clear images of the suspect’s face.

Investigators are now working to identify and apprehend the robber as quickly as possible.

A security video posted by Yaowarat Krungthep gold shop shows the robbery at its branch inside Lotus City Park in Bang Phli district on Saturday afternoon.

Prime Minister Anutin Charnvirakul has made the correct, but long overdue, move in forming the National Committee for the Prevention and Suppression of Technology-Related Crimes.

Usually, countering cybercrime duties are scattered among government agencies and ministries. Such a silo mentality and culture may help explain why those responsible for countering cybercrime and scammers are in such a state of disarray.

The 24-member committee raises hopes that state bodies will be able to work together while being on the same page.

Chaired by Mr Anutin, this committee will bring under one umbrella the foreign affairs, digital economy, interior and justice ministries, as well as the Royal Thai Police and independent bodies such as the Anti-Money Laundering Office (AMLO), the Office of the National Anti-Corruption Commission (NACC), the Bank of Thailand (BoT) and the National Broadcasting and Telecommunication Commission (NBTC).

It is expected to lead to closer collaboration among agencies responsible for tackling cybercrime.

The government has already started to up its game in tackling scammers. So this national committee can carry on the good momentum.

The 1411 hotline initiated by the previous Pheu Thai government serves as an example of the close collaboration between the police and commercial banks in freezing the accounts of fraudsters and mule accounts, in order to return the money to victims.

A campaign this month by the new Minister of Digital Economy and Society (DES), Chaichanok Chidchob, to better scrutinise iris-scanning activities linked to crypto trading schemes is another good example that shows the government is working to prevent the abuse of personal biometric data.

But more needs to be done. The elephant in the room is Thailand’s notorious status as a transit point for human traffickers to ship forced labourers to work at scam centres in Myanmar’s Myawaddy and boiler rooms in Cambodia.

Without the use of bribes, it would be impossible for these workers to move across the border so easily. It is an open secret that just 20,000-30,000 baht of “tea money” can make unscrupulous officials turn a blind eye to a truck taking contraband goods across the border.

Without restructuring border immigration and removing all the bad apples, Thailand will remain a “safe” transit point for traffickers. What is lacking is the political will to go after the big fish.

Early this year, Chinese Assistant Minister Liu Zhongyi visited Mae Sot, which borders Myanmar, and Myawaddy to inspect operations aiding victims of call-centre scams. And last month, a Chinese court sentenced to death 11 members of a family that ran scam centres in Myanmar’s Laukkaing, close to the Chinese border.

This week, South Korea’s Second Vice Foreign Minister Kim Jina went to Cambodia to rescue kidnapped citizens from boiler rooms. On Wednesday, the US government seized US$14 billion (458 billion baht) in bitcoin and charged Chen Zhi, the founder of a Cambodian business empire, Prince Group, with masterminding a forced-labour scam and money laundering.

So while this new committee is a good start, it will just be another paper tiger unless the government bares its teeth and flexes its muscles.

The State Railway of Thailand (SRT) has filed a new lawsuit with the Buri Ram Provincial Court, in a bid to seek the eviction of occupants from nine additional land plots in the Khao Kradong area that are currently used for commercial purposes.

If the court rules in favour of the SRT, the railway agency said the land will be reclaimed and utilised to generate revenue for the state enterprise.

The SRT also clarified developments in its earlier case filed on Tuesday, seeking to revoke title deeds for plots 3466 and 8564 near the Khao Kradong intersection.

It cited the National Anti-Corruption Commission’s (NACC) decision to revoke the deeds because they overlapped SRT-owned land.

The NACC ruled that these plots overlap with railway land and instructed the Department of Lands (DoA) to revoke the deeds under Section 61 of the Land Code.

The decision was made under the NACC’s authority granted by Section 99 of the Organic Act on Anti-Corruption.

The SRT also said this case sought an order for occupants to dismantle structures and vacate the premises.

According to SRT’s statement yesterday, the new lawsuit targets both individuals and legal entities occupying large plots of land for business activities.

The nine plots involved are numbered 3477, 24091, 3476, 3742, 3743, 115572, 9160, 3285, and 30222.

The agency emphasised that these cases do not affect the general public.

It stated that these cases are strictly aimed at protecting state assets and maximising the organisation’s income through the lawful use of its property.

On March 30, 2023, the Central Administrative Court ruled that the Khao Kradong land forms part of the railway corridor and is therefore public property.

It declared the issuance of overlapping title deeds illegal and ordered DoA to revoke them.

However, as the DoA’s investigation committee chose not to act, SRT thus had no choice but to file its own lawsuit to assert its ownership rights, stressing that this was a legitimate legal process rather than a delaying tactic.

The court proceedings for these cases are expected to take around two years, with potential appeals extending the process by another year.

The verdict will likely set an important precedent for resolving the remaining 995 land disputes, according to the statement.

Hong Kong-based conglomerate Swire Pacific plans to open its first Upper House hotel in Bangkok, marking the brand’s debut in Thailand, alongside its first branded residence project worth 30-40 billion baht on Wireless Road.

Toby Smith, deputy chairman of Swire Hotels, a subsidiary of Swire Pacific, said the group is expanding its Upper House hotel brand globally, expanding from its presence in Hong Kong and mainland China.

“We are exploring potential sites in Bangkok, either in the central business district or along the Chao Phraya River, for our first Upper House hotel in Thailand and the brand’s inaugural property in Southeast Asia,” he said.

The group operates three Upper House hotels in Hong Kong, Chengdu and Shanghai. The latter two were recently rebranded from The Temple House and The Middle House to Upper House to create a unified global brand identity.

The group plans to open three new Upper House hotels in Shenzhen in 2027, Xi’an in 2028 and Tokyo in 2029, as well as one in Australia, which will also feature a branded residence, the second after Bangkok.

“Upper House Bangkok is expected to be completed by 2030 — the same year we plan to finish our two ultra-luxury condo projects on Wireless Road, which includes our first Upper House branded residence,” said Mr Smith.

RARE FREEHOLD

Upper House Residences Bangkok with 156 units and The Wireless Residences by Upper House with 239 units are being developed by City Dynamic Co, established in 2023 with registered capital of 1.65 billion baht.

City Dynamic is a joint venture between City Realty, the property arm of Chali Sophonpanich, holding 60%, and Swire Properties, a subsidiary of Swire Pacific, holding 40%.

Both projects are located on a 7.9-rai plot on Wireless Road opposite Lumpini Park near the Wireless-Sarasin junction, a site City Realty has owned for more than 40 years, said Casey Au, co-managing director of City Dynamic.

The branded residence will target affluent buyers seeking privacy and long-term legacy assets, while the second project will cater to younger generations looking for luxury and connectivity, he said.

“We expect strong demand from Thai buyers, accounting for around 60%, as both developments are freehold projects on Wireless Road, where most existing supply is leasehold,” Mr Au said.

The remaining 40% targets foreign buyers, particularly from Hong Kong, where interest in Thai properties has been strong, along with the Chinese market, home to a growing number of wealthy individuals, he said.

“We also plan to introduce our residential projects to Upper House members, which number around 400 and are all by invitation only,” said Mr Smith. “Most members are from Hong Kong and China, with 6-7 from Thailand.”

The largest units, comprising penthouses on the top floors, range from 700-800 square metres, offering 360-degree views and duplex layouts. While prices have yet to be finalised, he said luxury leasehold properties around Lumpini Park are priced from 400,000 to 500,000 baht per sq m, with freehold units expected to be at least 30% higher. Sales are scheduled for mid-2026 once the show units are completed.

The commerce minister held discussions with the Chinese ambassador on enhancing exports of Thai agricultural products to China and fostering sustainable and firm bilateral trade.

Commerce Minister Suphajee Suthumpun said she had discussions with Zhang Jianwei, Chinese ambassador to Thailand, last Wednesday to explore measures to improve economic collaboration between the two nations. Thailand sought China’s support in facilitating exports of Thai agricultural products to China, including rice, longan and beef cattle.

During the meeting, she asked the ambassador to communicate with the Chinese government about easing the import process for Thai longan and expediting the consideration to open the Chinese market for Thai beef cattle.

Mrs Suphajee also requested the Chinese government purchase more Thai rice, citing its quality and competitive prices.

She is planning to lead a delegation of 60 Thai businesses to the China International Import Expo in Shanghai in November, allowing Thai businesses to showcase their quality products and promote exports to China.

The two nations are slated to sign an agreement on upgrading the Asean-China Free Trade Area agreement at the Asean-China Summit later this month.

China is Thailand’s largest trade partner. In 2024, bilateral trade tallied US$116 billion, a 10.4% year-on-year increase, with Thailand’s exports totalling $35.3 billion and imports $80.6 billion.

For the first 10 months this year, bilateral trade amounted to $96.3 billion, up 28% year-on-year, with exports at $27.7 billion and imports $68.5 billion.

Key export products are fresh, chilled, frozen and dried fruit; rubber products; computers and peripherals; plastic pellets; and cassava products. Major imports include electric machinery and peripherals; electric appliances; computers and peripherals; and iron and steel products.

Former Pheu Thai leader Sompong Amornwiwat yesterday announced his resignation from the party, saying internal conflicts and his inability to voice certain opinions left him with no other choice.

Mr Sompong, 84, who automatically loses his party-list seat in parliament as a result of his resignation, said he had already notified the Election Commission (EC).

He insisted that his decision was unrelated to Pheu Thai’s current position as the opposition or to any decline in its popularity. He said he decided to quit due to his frustration with management issues dating back prior to the 2023 general election, as well as the party’s relatively unimpressive record in local and national elections.

Mr Sompong pointed to the party’s poor performance in the upper northern provinces as an example, noting that Chiang Mai, perceived as a Pheu Thai stronghold, secured only two constituency wins in the last polls.

He said he had been responsible for winning more support in the upper North but had seen his influence there steadily decline. The final straw came in the form of candidate selection in Lamphun’s Constituency 1 when the party picked another candidate without considering Mr Sompong’s recommendation, despite the latter having won a strong support base, he said.

Mr Sompong accused senior figures of intervening without proper consultation or polling, saying that when the party’s popularity was in decline, it must be even more thorough in selecting candidates.

He expressed gratitude to former prime ministers Thaksin and Yingluck Shinawatra, who are siblings, and Khunying Potjaman na Pombejra and other party members, saying he would step back from frontline politics but was still willing to advise younger politicians if asked.

In high school, Artyasit Srisuwan saw his friends bring erotic books to class. Teachers confiscated the material and scolded them, but Artyasit did not take the genre seriously until over a decade ago when he got to know Luang Vilaspariwat, known as Kru Liam, a pioneer of erotic literature in the early 20th century, and wanted to write a thesis about it. Due to the lack of primary sources, his adviser convinced him to change the topic.

But it was already engraved in his mind. In 2013, Artyasit proposed it again for his master’s degree and his adviser gave him the green light.

“That was the beginning of an exciting journey. Historical studies require primary sources. It is a huge challenge. I had to search for old pornographic books. It was believed that libraries don’t keep them. Five years later, I discovered that they are hidden,” he said.

Artyasit, an expert in modern Thai literature, shared his research in a seminar, titled “Siamese Pornography: Breaking The Taboo Of Sex In Thai Society, 1910s-1960s”, at Pridi Banomyong International College, Thammasat University, on Oct 10. He is a historian, columnist and winner of Fan Pan Tae, a televised competition for the most diehard fan of a certain subject, on the topic of Thailand’s SEA Write books.

Artyasit initially contacted Suchart Sawadsri, but the veteran editor did not know much about the topic. One day, a newspaper reported that Thongchai Likhitpornsawan discovered Kru Liam’s erotic novel Klom Khan. He contacted the old book collector and had the opportunity to see it for the first time. A personal connection led him to interview a number of experts in the book industry, however, they requested anonymity due to the topic.

“I know that pornographic books are private and treasured possession. It can be uncomfortable for owners [to share],” he said.

Artyasit started to buy erotica himself. He found it at a second-hand bookstore in Yaowarat’s Tamarind Alley. However, they were hidden and expensive. A single palm-sized book cost around 800-1,200 baht. Due to a limited budget, he could buy only a small number. In 2015, he received a grant from the Thailand Research Fund which allowed him to buy more for his research.

Artyasit disagrees with most scholars who contend that Phra Tamrap Yoni, literally translated as vagina manual, was the first erotica in Siam. In his view, Kru Liam, a teacher who received a royal scholarship for further study in England in the 1890s, penned four novels — Klom Khan, Phananchom, Phromajari and Daruni Prawat — that constitute the first pornography in Siam.

At 14, Artyasit got to read Kru Liam’s earliest work Khwam Mai Phayabat (No Vendetta), the first known novel by a Siamese author. It is a parody of Khwam Phayabat, a translation of Marie Corelli’s Vendetta by Mae Wan, a pseudonym of Phraya Surinracha. Since then, it opened the door to more of Kru Liam’s works.

Klom Khan is the tale of an innocent woman in Victorian England who has an extramarital affair and seeks an abortion from a fake doctor. However, he makes an appointment with her in the barn, duping her into believing that sexual intercourse is the procedure. On the third night, the woman falls from a broken bed and loses her baby, but she thanks the doctor because she believes he helped her.

“Unlike many scholars, I think Kru Liam did not translate but wrote Klom Khan,” he said.

According to his research, Kru Liam thought Khwam Mai Phayabat was a commercial failure because local characters and settings did not appeal to readers. In his second novel Nang Neramit (The Divine Nymphs), he recounts an adventurous, suspenseful tale in Egypt, in the style of H. Rider Haggard’s King Solomon’s Mines and She. The use of exotic scenes paved the way for other racy novels, including Klom Khan.

Artyasit said Klom Khan inspired the production of erotica in the 1920s. At the time, sex was not a taboo subject until the government sought control of obscenity. During World War II, shortage of paper and an economic downturn forced publishers to adapt. Erotica was printed on mulberry paper and circulated underground, which gave rise to Wannakam Pim Deed, or type-written literature. After World War II, it was replaced with Wannakam Choh Chae, or erotic literature that makes readers get wet.

“It is known as Nangsue Pok Khao, literally translated as the white-covered book. It contained racy words and explicit material, for example Sao Hong Kong Jai Ded, with reference to politicians,” he said.

Artyasit explained that erotica surprisingly provided a platform for post-war lower-class women, especially those migrating to the city, to express their voice. For example, masters often complained that water was not running in their houses because too many people were flocking to the city, while servants talked back and asked if they are better at sex than ladies. Women slept with masters in exchange for better living conditions.

A new genre also emerged in the mid-century. Arthit Jiamrattanyoo, a history lecturer at Chulalongkorn University’s Faculty of Arts, conducted research on life and society magazines. They covered society at large, high society and social gatherings, featuring photos of women in casual attire, evening dresses, swimsuits or in the nude. Most images, however, came from porn magazines and did not relate to the stories. Household names included Chat Thai Athit, Puangpayom and Thai Pim Piset.

These magazines presented various types of writing. Interviews allowed women to express their views and impart or challenge values. Society columns followed development, enabling readers and writers to expand their reference group and create parasocial interaction with women. Above all, behind-society literature was an exposé of corrupt practice, including underage sex, debauchery and seduction, of which socialite women were victims and perpetrators.

“It might be seen as an adaptation of erotic literature. Going overground, writers toned down raunchiness but could present more engaging ideas,” said Artyasit.

Still, it is difficult to ascertain the identity of erotic writers. Rumpa, a pseudonym in Nangsue Pok Khao, is a case in point. Although it was revealed that Rumpa was female, readers remained doubtful about the author’s identity.

Some writers were male, but adopted female voice in the belief that they would sell more copies, for example, Mae Wan. Some famous authors also wrote erotica under pseudonyms to make more money.

Thailand’s Sarit Suwannarut, armed with a new swing, putter and shafts, marched into the lead at the Macao Open on Friday, looking every bit the golfer who has won two of the biggest titles on the Asian Tour.

The 26-year-old took charge of the US$1million (approx 32 million baht) event by making a brilliant 20-foot eagle putt on the par-five 18th to shoot a third-round seven-under-par 63.

It is the joint-lowest round of the week and saw the Thai take the lead on 12-under 128, three shots ahead of Ye Wocheng, the unsung Chinese golfer, who carded a 66.

Ye’s compatriot and former college-mate Bobby Bai (67), Australians Jack Thompson (68) and Brett Rankin (66), Germany’s Dominic Foos (68) and Siddikur Rahman (66) of Bangladesh are another stroke back.

China’s Ding Wenyi, the joint first-round leader with Gunn Charoenkul from Thailand, is also in that group after a 69. Gunn fell back after a 71 and is six under.

Sarit, winner of the Indonesian Masters in 2022 and China Open the following year, has had a relatively quiet season.

He is currently 34th on the Asian Tour Order of Merit — principally thanks to two top-12 finishes in his last two events. These have been the highlights of his season so far — the result of adjustments to his swing and equipment that appear to have got him back on track.

“I have done a few things. I was just swinging my arms and not turning my body, and I changed to softer shafts so I can hit a cut more easily plus I have a different putter — that’s been important and it’s working well,” Sarit said.

His eagle on the last hole was a result of a giant 8-iron second shot on a hole that is 576 yards.

“I think it was all about putting today,” he added.

“Even though I had two three-putts, I still made a lot of birdie putts. I missed one three-footer, but other than that I made everything, so it’s the putter that kept the momentum going.

“For sure, I never change my plan. If I have a chance to be aggressive, I will always be aggressive. You have to commit to the shot and then hit. A bad shot is still a bad shot, so I’m going to stick to my plan.”

Sarit is one of the strongest drivers on Tour, an attribute not a necessity at the Macau Golf and Country Club, where accuracy is key. However, the man nicknamed ‘Safe’ was long and straight yesterday on his way to making an eagle, seven birdies and two bogeys. Surprisingly, he three-putted the 16th for a bogey from 30 feet.

Hong Kong’s Taichi Kho came in with a 69 and is four-under 136, along with Korea’s Im Sung-Jae, who fired a 71.

Defending champion Rattanon Wannasrichan of Thailand is also tied with them after a 68.

Kho found himself in one of the strangest situations on a golf course when his father, who had been following his group, stepped in to caddie for John Catlin, one of his playing partners, whose caddie was unable to carry on due to heatstroke.

China’s Haotong Li is one stroke back after a 67, while England’s Lee Westwood, winner of this event 26 years ago, bounced back with a 68 after an opening 74, but missed the cut by three.