Reports of Thailand easing ownership laws leads to increased interest in property from foreigners

[webfact]

File photo

 

Thai business media reported analysis from the Real Estate Information Center that reported increased interest from foreigners as a result of announcements under the "Second Home in Thailand Scheme".

 

In the period of a month from March 25th there was freehold and leasehold interest from well-off retirees in particular. 

 

The reasons were threefold - the change of quotas in condo buildings from 49% foreign ownership to 70-80%, the ability to buy houses and land valued at 10-15 million baht in their own name and changes to lease arrangements from 30 to 50 years extendable for another 40 years on top.

 

REIC also gave details of stats for foreign purchases of real estate in the three years from 2018 - 2020. 

 

Foreigners bought 34,651 units spending 145.5 billion baht.

 

This is 14.7 of the total market including Thais.

 

96.2 were condos with the rest land purchases through nominees. 

 

Most popular places were Chonburi with 30.3% of total foriegn purchases, Chiang Mai 18.5%, Phuket 17%, Bangkok 7.8% and Samut Prakan 6.3%.

 

Of all foreign purchases 77.6 were under 5 million baht and 22.4% over 5 million. 

 

The data for the last few months seemed anecdotal at this stage as no concrete stats were forthcoming, notes Thaivisa. 

 

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[worgeordie]

34 minutes ago, webfact said:

The reasons were threefold - the change of quotas in condo buildings from 49% foreign ownership to 70-80%, the ability to buy houses and land valued at 10-15 million baht in their own name and changes to lease arrangements from 30 to 50 years extendable for another 40 years on top.

So this has already been written into law ?, as only a while ago

I read they were mulling making changes making it easier for

foreigners to buy property here.

regards Worgeordie

[johng]

48 minutes ago, webfact said:

96.2 were condos with the rest land purchases through nominees. 

 

I thought "owning land" through a nominee was illegal !!!   ?  ????

[johng]

13 minutes ago, worgeordie said:

So this has already been written into law ?

 We will all know its law when they change the  line in the Thai national anthem about

"every inch of Thailand belonging to Thais"  ????

[AnnieSeek]

Any change is unfortunately about China buying up everything - they are going to buy Nana Plaza one day and build a condo over it i tell ya. 

[sammieuk1]

Phase one let your victim's in first ????

[pegman]

One would think this would bring down foreign quota condo selling prices. 

[Excel]

more total waffle

[kotsak]

Next, throw a vaccine in the offer..

[RichardColeman]

Really can't see why anyone would want to own and live in a concrete box, 70 ft up in the air, sandwich between 10's of others. Staying in a hotel for a few days is enough for me. 

 

Now, a £1,000,000 executive 3 bed pad overlooking the beach my be a little different. but I doubt many of us are in that bracket

[NCC1701A]

There was a story almost immediately after this announcement that the possibly of this happening was  very low.  

 

Think what this would do to the value of foreign quota condos.  At least falling in line with Thai owned quota.  

 

 

[Anythingleft?]

Same old stories regurgitated more and more frequently now......

[The Cipher]

Demographic trends and oversupply make Thailand relatively less attractive than a lot of other countries for real estate purchases. Especially when coupled with highly affordable rents.

[Destiny1990]

Better throw in some straight forward and simply pay and stay long-term visa plans with it.

[Bluespunk]

2 hours ago, webfact said:

Thai business media reported analysis from the Real Estate Information Center that reported increased interest from foreigners as a result of announcements under the "Second Home in Thailand Scheme".

“There’s a sucker born every minute”

 

PT Barnum (well it’s a phrase associated with him, not much evidence that he coined the phrase)

 

Perhaps Chaucer’s words would suffice (original spelling here)

 

“Therfore bihoveth hire a ful long spoon That shal ete with a feend.”

 

 

Edited May 14, 2021 by Bluespunk

[Cake Monster]

2 hours ago, worgeordie said:

So this has already been written into law ?, as only a while ago

I read they were mulling making changes making it easier for

foreigners to buy property here.

regards Worgeordie

I dont think this is yet a Law  ( and probably never will be ) 

Its just still a Mull

[ThailandRyan]

Well if the Story is correct where is the newly written law and where in the gazette was it printed and when. asking for a friend who wishes to buy a 11 million baht home, get a free visa, and own the land in his name. 

[KamnanT]

1 hour ago, pegman said:

One would think this would bring down foreign quota condo selling prices. 

 

I've never really understood why there is much of a "foreign quota" premium, if any at all.  The Condominium Act allows up to 49% of a condo building's private (excluding common area) floor space to be sold freehold to foreigners.  It doesn't require that individual units be designated as "Thai quota" or "foreign quota".  If you are a foreigner, you can purchase any condominium in Thailand as long as your purchase would not result in more than 49% of the total floor area being owned by foreigners.

 

Example: 49% of a building is owned by foreigners, but then the foreign owner of unit #1 sells his unit (which represents 15% of the total floor area) to a Thai.  A month later, the Thai owner of unit #2 puts his unit (which represents 10% of the total floor area) on the market.  Result: anyone, foreign or Thai, can buy it, as only 34% of the floor area is owned by foreigners.  All the Land Titles Office requires is a certificate from the juristic person attesting that the purchase would not result in more than 49% of the floor area being owned by foreigners.  Well plus all of the other guff, of course, like FET forms, etc.

 

One could argue that, as the the foreign owner of condominium, one would never sell to a Thai because your "foreign quota" unit is worth more to a foreigner.  In reality, one sells to the first willing buyer who offers a price you can accept.

[Rampant Rabbit]

I'd  rather  burn my  money in front of the developer and government than give it them just to see the  look  on their  faces.

[ukrules]

2 hours ago, NCC1701A said:

There was a story almost immediately after this announcement that the possibly of this happening was  very low. 

I'm pretty sure that after that there was another story announcing that the 'time wasn't right' and there will be no changes at all.

 

So these suckers looking to buy are doing so based on headlines which did not result in any change at all.

 

[ChipButty]

Imagine that being able to own everything lock stock and barrel without bending the rules, That would <deleted> off a lot of thai women when they know they cant get their grubby hands on it,

[Rampant Rabbit]

3 hours ago, johng said:

 We will all know its law when they change the  line in the Thai national anthem about

"every inch of Thailand belonging to Thais"  ????

I  bought 2 cm of it so am within their rules.

[zhounan]

Many companies will go bankrupt and many properties will end up in banks.
This legal reform will allow rich internationals, especially Asians, and local Sino-Thai to buy up Thailand's best assets at a discount, a bit like what happened in 1997.

[newnative]

As always, no actual implementation.  Just talk, talk, talk.  

[Seeall]

5 hours ago, johng said:

 We will all know its law when they change the  line in the Thai national anthem about

"every inch of Thailand belonging to Thais"  ????

 

they must have changed the anthem because Minmar I beleive have been pushing the border for centuries...  look at the map..

east side.. could TH not have stoped them taking that area?  i bet minmar used boats as well...

[Pauliewall]

6 hours ago, RichardColeman said:

Really can't see why anyone would want to own and live in a concrete box, 70 ft up in the air, sandwich between 10's of others. Staying in a hotel for a few days is enough for me. 

 

Now, a £1,000,000 executive 3 bed pad overlooking the beach my be a little different. but I doubt many of us are in that bracket

 

I had never lived in a flat till I came to Thailand and both condos I've stayed in have had neighbors above rearranging the furniture on a nightly basis. Being able to buy a property with a small amount of land would be a dream for me. 

[piewarmer]

If over 50% of a condo building is foreign owned there's a chance that the majority might vote to get maintenance done, 

Every condo I have lived in here has had no increases in monthly fees for many years because of the majority of Thai owners refuse to pay anything at all.

 

 

[ukrules]

Nothing is happening as per the leak :

 

 

[Mike Teavee]

10 minutes ago, piewarmer said:

If over 50% of a condo building is foreign owned there's a chance that the majority might vote to get maintenance done, 

Every condo I have lived in here has had no increases in monthly fees for many years because of the majority of Thai owners refuse to pay anything at all.

 

 

I seem to recall that the original proposal was for the additional Foreign quotas to not have voting rights so still a minority when it comes to voting

[ThailandRyan]

8 minutes ago, ukrules said:

Nothing is happening as per the leak :

 

 

So then the government fake news investigators need to investigate this story to its full extent... ????