In 2013, the Thai government announced plans to launch infrastructure projects worth 2 trillion baht ($62 billion) in the next six to seven years, involving mainly the development of Thailand’s rail and road transport network. The value of this mega-project will no doubt create a large number of jobs and inject cash flow in the construction industry. The plan will help urbanize many parts of Thailand, and the announcement already has provoked a boom in the real estate sector. Although this may seem like good news in the real estate and constructions sectors, it is important to remain cautious and be prepared for the opposite outcome. Speculation, overvalued land prices, and oversupply of condominiums and housing may lead to another real estate boom and burst.

The Draft Act

The draft new act authorizing the Ministry of Finance to borrow up to 2 trillion baht to develop the transport infrastructure of the country has already been approved by the House of