Thailand changes foreign property ownership laws
Thailand is making significant changes to its property laws, aiming to breathe new life into its real estate market. The Government Housing Bank’s Real Estate Information Centre (REIC) has backed a policy that increases the foreign ownership cap in condominium projects from 49% to 75%. This change comes alongside an extension of property leaseholds for foreigners from 30 years to 99 years. Subsequently, the Thai Cabinet endorsed these changes.
REIC Director Wichai Wiratkapan emphasized the urgency of these measures. He noted a 36.5% rise in unsold housing units compared to last year. As of the first quarter, 213,429 units remain unsold, valued at around 1.21 trillion baht. The extended leaseholds and increased ownership caps aim to attract foreign buyers to invest in Thailand’s real estate market. This includes multinational corporation executives and digital nomads.
Foreign property ownership in Thailand could help real estate market
This policy shift seeks to counteract the significant drop in purchasing power among Thai consumers. Moreover, this decline has left the real estate market in a slump. The government believes that by making property ownership more accessible to foreigners, it can inject much-needed capital into the sector.
However, the move has not been without controversy. Critics argue that increasing foreign ownership could harm local buyers and favor large developers. They express concern that this policy might lead to a ‘sell-off’ of the country’s assets, potentially marginalizing Thai citizens in the property market.
The Interior Ministry has been tasked with studying the potential impacts of allowing foreigners to own a larger share of condominium units. This decision reflects Thailand’s broader strategy to lure foreign investment, despite the pushback from some quarters.
As Thailand navigates these changes, the real estate market stands at a crossroads, balancing the need for foreign investment with the interests of local stakeholders. In conclusion, the outcomes of these new policies will likely shape the future landscape of property ownership in Thailand.
