Government Considers Raising Foreign Ownership in Condominiums to 75%

The government is evaluating the feasibility of increasing foreign ownership in condominiums from 49% to 75%, according to Deputy Prime Minister Phumtham Wechayachai. This move is part of broader efforts to stimulate the economy and attract more foreign investment .

Additionally, the Ministry of Interior has been tasked with assessing whether extending the leasehold period for foreigners from 50 years to 99 years is appropriate. This proposal, first discussed at a cabinet meeting in April, aims to make property investments more attractive to foreign nationals .

Benefits for Thailand:

Economic Boost: Increasing foreign ownership limits and extending leaseholds can significantly stimulate the real estate market, leading to increased economic activity and job creation within the construction and related industries.
Foreign Investment Influx: By making it easier and more attractive for foreigners to invest in Thai properties, the country can attract more foreign capital, which can be used to finance various development projects and infrastructure improvements.
Property Value Increase: With higher foreign demand, property values are likely to rise, benefiting local property owners and investors. This can lead to an overall improvement in the real estate market.
Tourism and Expatriate Attraction: Enhancing property investment opportunities for foreigners can attract more expatriates and long-term tourists, boosting related sectors such as retail, services, and hospitality.
Revenue Generation: Increased property transactions can lead to higher revenue from taxes and fees associated with real estate sales and transfers, providing a financial boost to government coffers.

Addressing the Market Demand: Some condominium projects have already adapted to the high demand from foreign buyers by offering units under leasehold contracts at prices 10-15% lower than freehold units. This strategy has proven effective, as foreign buyers constitute a significant portion of the market .

Rising Foreign Investments: According to the Real Estate Information Center (REIC), condo transfers to foreigners surged in 2023, reaching 14,449 units—a 25% increase from the previous year. The value of these transfers rose by 23.5% to 73.1 billion baht, surpassing pre-pandemic levels. Chinese buyers led the market, accounting for 45.8% of the total units and 46.7% of the total value, followed by buyers from Russia, the United States, and Myanmar .

These proposed changes reflect the government’s commitment to enhancing Thailand’s attractiveness as a destination for foreign investment in real estate, ensuring long-term economic growth and stability.

Source: Bangkokpost, REIC