Property Stocks Extend Gains in Response to New LTV Measure

Property stocks continued to rally after a gain on last Thursday in response to the new measure from the Bank of Thailand that allows borrowers to get 100% LTV limit.

 

As of 11:05 local time in Thailand on October 25, 2021, the share price of Supalai Public Company Limited (SPALI) rose ฿1.50/share or 6.94% to ฿23.10/share.

AP (Thailand) Public Company Limited (AP) rose ฿0.50/share or 5.71% to ฿9.25/share.

Raimon Land Public Company Limited (RML) rose ฿0.09/share or 9.18% to ฿1.07/share.

Land and Houses Public Company Limited (LH) rose ฿0.15/share or 1.80% to ฿8.50/share.

Sansiri Public Company Limited (SIRI) rose ฿0.02/share or 1.56% to ฿1.30/share

L.P.N. Development Public Company Limited (LPN) rose ฿0.05/share or 0.97% to ฿5.20/share..

Origin Property Public Company Limited (ORI) was flat at ฿11.50/share.

 

On October 20, 2021, the Bank of Thailand (BOT), issued another housing loan measure which will give borrowers under 10 million baht a 100% Loan to Value (LTV) limit plus 10% more for decorations and 100% LTV limit to a house over 10 million baht from the current LTV range of 70-90%.

Activities in the property sector had a better outlook in 1H21 compared to 1H20 due to the new normal lifestyle and series of promotions from developers to boost sales as consumer behaviour is shifting to seek private quarters during the pandemic.

The measure will be effective until December 2022.

After the announcement of the new LTV measure from the BOT, Capital Nomura Securities (CNS) stated that the measure will most benefit developers with high backlog namely; Supalai Public Company Limited (SPALI), AP (Thailand) Public Company Limited (AP) and Origin Property Public Company Limited (ORI), giving a target price at Bt26.00, Bt10.50, and Bt13.70 per share, respectively.