Calls to restrict foreign property purchases in Bangkok

[webfact]

Calls to restrict foreign property purchases in Bangkok

By The Thaiger

 

 

Dr. Sopon Pornchockchai, the President of the Thailand Agency for Real Estate Affairs, is calling for controls to restrict foreign property buyers.

 

Thailandproperty.news is reporting than he is justifying his comments saying the growth in income of Thais is slower than the property price rises being pushed up by high foreign demand.

 

“Some measures should be adopted, such as higher stamp duty for foreigners,” he said.

 

Full story: https://thethaiger.com/thai-life/property/calls-to-restrict-foreign-property-purchases-in-bangkok

 

-- © Copyright The Thaiger 2018-10-18

[phantomfiddler]

Personally I would say that the current 49% foreign ownership limit is more than enough ! Why do Thais have this inbuilt need to milk the farang ?

[simoh1490]

Just now, phantomfiddler said:

Personally I would say that the current 49% foreign ownership limit is more than enough ! Why do Thais have this inbuilt need to milk the farang ?

Why, the article tells us why, because just like London and many other cities around the world, property price inflation is pushing housing costs beyond the reach of the native population and well beyond the reach of the poeple who were raised there.

[YetAnother]

2 hours ago, webfact said:

is calling for controls to restrict foreign property buyers.

he is absolutely right for insinuating that foreigners would take over thailand; wouldnt be hard

[Snow Leopard]

15 minutes ago, simoh1490 said:

Why, the article tells us why, because just like London and many other cities around the world, property price inflation is pushing housing costs beyond the reach of the native population and well beyond the reach of the poeple who were raised there.

Can you explain why this happens? 

[KiChakayan]

13 minutes ago, phantomfiddler said:

Personally I would say that the current 49% foreign ownership limit is more than enough ! Why do Thais have this inbuilt need to milk the farang ?

"He noted that Chinese purchases account for about 80 percent of foreign buyers." So, milking the farang? 

I'd say this the issue here is that it will be a very, very long time before the Thais and their economy become competitive. 

 

[1337markus]

Be nice if the opposite happened in other countries, ban Thai's from owning businesses, football teams,...................................

[scubascuba3]

Why, the article tells us why, because just like London and many other cities around the world, property price inflation is pushing housing costs beyond the reach of the native population and well beyond the reach of the poeple who were raised there.

Doesn't make sense, that's why you have thai % and foreign %, the thai % should have a lower value because of affordability. Now if the reason is these fake thai companies owned by farang then tackle that issue

 

[klauskunkel]

3 hours ago, webfact said:

Calls to restrict foreign property purchases in Bangkok

since Bangkok is sinking, it would make sense from a Thai perspective to encourage foreign property purchases... 

[Stargeezr]

Go to Vancouver B.C. in Canada and see how many properties are

owned by Asians who do not even live there. Prices are higher than

most people can afford.

Geezer

[TallGuyJohninBKK]

I'm pretty sure I've seen this same guy making these same kinds of proposals here in the past, and reading news articles on same.  But I haven't heard of any move on anyone in the government's part to do anything about his proposals, as yet.

 

Do they really want to mess with the Chinese?  And if the Chinese aren't buying all these condos and such, just where are the well-heeled Thai development companies going to be getting their revenues from? Thais who are in debt up to their eyeballs already?

 

 

[KittenKong]

1 hour ago, phantomfiddler said:

Personally I would say that the current 49% foreign ownership limit is more than enough ! Why do Thais have this inbuilt need to milk the farang ?

It's easier than working.

[seancbk]

1 hour ago, phantomfiddler said:

Personally I would say that the current 49% foreign ownership limit is more than enough ! Why do Thais have this inbuilt need to milk the farang ?

 

It isn't Farangs that are buying up Bangkok properties, it is rich Mainland Chinese who are doing it.   I know of two people (one Thai woman and one Farang guy) who live in China and HK (respectively) and their business is pitching Bangkok properties to rich Chinese as an investment.   Sometimes the Chinese buyers come over to view the properties, but mostly they just buy off-plan; and they aren't just buying one condo, some of them are snapping up multiple units at a time. 

When you consider the price of property in HK (for example) a condo purchase in Bangkok is a steal.

[Esso49]

1 hour ago, 1337markus said:

Be nice if the opposite happened in other countries, ban Thai's from owning businesses, football teams,...................................

and property !

[Peterw42]

Does Dr. Sopon realise that developers only build condos because they can sell half the block to foreigners, if foreigners can no longer buy half the block, nobody will be building the block. I think nissan would probably stop making cars in Thailand if only Thais were buying them.

Although a condo is physically in Thailand its pretty much an export industry.

Edited October 18, 2018 by Peterw42

[baansgr]

I'm all for restricting ownership as have seen first hand what happens when locals need to move as they can't afford  to live in the area they grew up. Thailand however will see such a fall on inward investment they will then start complaining about that.  

[Stargeezr]

Yes just ask the real Hawaiians of how they like the prices in their

state of the USA.

Geezer

[hansnl]

2 hours ago, 1337markus said:

Be nice if the opposite happened in other countries, ban Thai's from owning businesses, football teams,...................................

You mean Chinese?

[Mickmouse1]

That will reduce the amount of money coming into the country.

[Ulic]

Personally, I don't believe that there are the numbers of foreigners here to drive up property prices. Thailand does not make it easy to work here and all the money coming into the country from retirement pensions is a significant benefit. With a 49% foreign ownership Thais are already protected. The problem is highrise construction is expensive. Not the same as building a shanty-town. Highrise construction with its high density is also environmentally less damaging than sprawling suburbs. Easier to service with public transportation and other services. Listen to this guy and construction of highrise apartments will grind to a halt not cause them to drop in price.

[SunsetT]

3 hours ago, YetAnother said:

he is absolutely right for insinuating that foreigners would take over thailand; wouldnt be hard

Too late! The Chinese took it over years ago.

[SunsetT]

2 hours ago, klauskunkel said:

since Bangkok is sinking, it would make sense from a Thai perspective to encourage foreign property purchases... 

....With special discounts for fatties!

[RichardColeman]

Personally I think anyone is mad to tie up money in a property in Thailand .............and be at the mercy of any Visa changes.

[marko kok prong]

is there not already an oversupply with many standing empty,seems a strange decision,on another note better to buy high up,as much of Bangkok will be under water by the end of the century if not sooner,you can always tie your boat up to your 20th storey balcony.

[simoh1490]

6 hours ago, Snow Leopard said:

Can you explain why this happens? 

Desirability determines demand and demand determines price, the cost of new builds keep pace accordingly, 

[simoh1490]

5 hours ago, scubascuba3 said:

Doesn't make sense, that's why you have thai % and foreign %, the thai % should have a lower value because of affordability. Now if the reason is these fake thai companies owned by farang then tackle that issue

 

Doesn't make sense to you, you mean! Unfortunately for your theory the price per square metre of units in a condo building move in the same way, regardless of which nationality owns the square metre.

[unamazedloso]

It's got nothing to do with foreigners. They dont set the prices. I worked for a developer here for a while. Some condos complete average around 50k to make so its there own problem. Its a Thai problem. Foreigners cant own didly squat and why would they want to. The value isnt there!

I built my own house, just me and the misses and did everything.

Why would ayone want a crappy condo in pollution central. Not me!

[simoh1490]

3 minutes ago, unamazedloso said:

It's got nothing to do with foreigners. They dont set the prices. I worked for a developer here for a while. Some condos complete average around 50k to make so its there own problem. Its a Thai problem. Foreigners cant own didly squat and why would they want to. The value isnt there!

I built my own house, just me and the misses and did everything.

Why would ayone want a crappy condo in pollution central. Not me!

Foreigners can't own condo's in Thailand, you heard it here first!

[smutcakes]

Just now, simoh1490 said:

Foreigners can't own condo's in Thailand, you heard it here first!

Yes, sounds like he was a very knowledgable member of staff for his imaginary developer he worked for!

[Snow Leopard]

28 minutes ago, simoh1490 said:

Desirability determines demand and demand determines price, the cost of new builds keep pace accordingly, 

So it is fair market economics then? Nothing else. There are more options open to governments than to put in restrictive measures and legislation that destroys investment.