Accumulated non-performing loans (NPLs) for housing totalled 200 billion baht as of the first quarter of this year, said NCB chief executive Surapol Opastien. Debts on which there have been payment defaults for more than 90 days are counted as NPLs.

“About 124 billion baht of NPLs came from borrowers in Gen Y, which comprises people who have recently started working, or a family,” said Surapol.

Meanwhile, housing debts in the special mention (SM) category – defaults from 30 to 90 days – total 180 billion baht, of which about 118 billion baht were owed by borrowers in the Gen Y age group.

“If we combine both the NPL and SM groups, Gen Y has accumulated over 242 billion baht bad debts in the housing market, covering nearly 160,000 contracts,” said Surapol.

He warned that this situation would lead to institutions providing housing loans employing even stricter criteria in granting new loans, thus making it harder for first-time jobbers and young families to buy their first houses.

“Rejection rate for housing loans is now at 60-70% and could grow even higher, especially for residential units priced under 3 million baht which target buyers in the lower income bracket,” said Surapol.