Easing restrictions on foreign property ownership in Thailand a good idea, says leading industry figure

[webfact]

Picture: Manager

 

A key figure in real estate has said that the proposals to ease restrictions on foreign property ownership in Thailand would be a good move, in principle.

 

Pornnarit Chuanchaisit, President of The Thai Real Estate Association, has said that the move would help stimulate the sector, which has suffered badly due to the pandemic, but more clarification is needed as to what the exact benefits and details of the proposals would be. 

 

For example, he said that clarification on whether foreigners would actually be allowed to own land in Thailand is needed. 

 

Mr Pornnarit said that the rules governing foreigners and land ownership in Thailand are part of the law and any change would need to be approved by the House of Representatives. The law simply can’t be changed following a proposal from the Tourism Authority  and that there are many stages before a law can be amended. 

 

Any change to the law regarding foreigners owning land in Thailand is likely to be a long and drawn out process and could take years before it even gets to the point of being considered by law makers, Thaivisa notes.

 

Mr Pornnarit said that long term leases for land of around 70 years are perhaps more feasible.

 

Manager reported that according to the Real Estate Information Center that between 2018-2020, foreigners transferred 34,651 condo units worth 145,577 million baht.

 

Foreigners in Thailand are able to own condominium units outright providing that 51% of the total units in the building are owned by Thais. 

 

The news comes after Thai language media reported on proposals from the Tourism Authority of Thailand (TAT) which aims to attract wealthy foreigners to settle in the county long term and in turn help to stimulate the Thai economy.

 

TAT says one million foreigners could come and stay in Thailand generating 1 trillion baht for the economy.

 

The target groups are wealthy foreigners, retirees over 50 who have $250,000 in government bonds or real estate, those with special skills the Thais want in the marketplace and workers for foreign companies, mainly the so-called digital nomads.

 

RELATED: Digital nomads to be allowed to work in Thailand without needing a work permit

 

Under the proposal, people who qualify through wealth, investment, educational qualifications and experience would be able to get a ten year visa, be able to buy land and work for up to 20 hours a week without a work permit.

 

This said Manager also was a major sticking point as the TAT were proposing that foreigners would only have to pay 17% tax, not the 35% of before. 

 

Thaivisa must stress that so far these are just proposals that the cabinet and other authorities will later consider in more detail.

 

 

-- © Copyright Thai Visa News 2021-06-10

 

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[Geoffggi]

SHooooosh, the Chinese may be listening .............................LOL

[Hockeybik]

"...clarification on whether foreigners would actually be allowed to own land in Thailand is needed." 

 

Clarification? Does anyone know how farang can freehold land in Thailand now? What needs clarified? Under what circumstances can foreigners own land now? I thought it was a non-starter now. (I'm not talking about owning a company that owns land.). 

[Olad Mate]

555555555555

[Fex Bluse]

7 minutes ago, Hockeybik said:

"...clarification on whether foreigners would actually be allowed to own land in Thailand is needed." 

 

Clarification? Does anyone know how farang can freehold land in Thailand now? What needs clarified? Under what circumstances can foreigners own land now? I thought it was a non-starter now. (I'm not talking about owning a company that owns land.). 

 

As this is Thailand, what this is really means is thus

 

Thailand (like China and some other countries in the region) has laws that are purposefully ambiguous. This allows for the powerful to exploit them when convenient.

 

What they mean by calling for clarification is some new law or revised law that is purposefully ambiguous, luring foreigners to the buy land that can be slowly stolen from them when the economy is stronger.

 

It's all a game - and the Thais never lose.

[tgw]

@Thai Government:

if you want to attract foreigners of the "better standard", just allow foreigners to buy a single, inheritable, residential property including the land it stands on, in their name in designated areas. period.

 

maybe make the allowed size of the plot depend on the size of the house. small 100m2 house -> up to 1 rai, huge Travolta-style villa of 3000m2 up to 50 rai.

That will get you the people you want to spend money in Thailand.

[worgeordie]

In principle , BUT it's never really going to happen , the restrictions

they would impose ,would not make it viable for Farangs .

regards Worgeordie

[laislica]

It's a bad idea. 

Land prices will skyrocket and locals, like children will not be able to afford to pay the higher prices. 

Good idea for the estate agents though.

 

See what happened in Spain. 

Locals greedily pushed the price as high as they could, then complained that foreigners had ruined their country.

I would prepare for a backlash on foreigners especially foreigners who owned land.

[Pedrogaz]

Rich foreigners are agro-corporations seeking cheap fertile farmland to exhaust with intensive farming. They want very large lots and to do away with the farmers. Saudi leases large tracts of Thai farmland to produce rice for itself. 

Ask yourself why when you drive into Bangkok you don't drive through tens of miles of slums like you would into Delhi, Kolkata, Mexico City or Caracas....it is because farmers in Thailand can still eke out a living by farming and so live on the land. This means they don't migrate to vast slums around the capital city. The last thing Thailand needs is agro-corps like ADM buying up farm land in Thailand. So let's make sure that stimulate the overbuilt condo market isn't the thin end of the wedge for foreigners owning farmland. 

[tgw]

Just now, Pedrogaz said:

Rich foreigners are agro-corporations seeking cheap fertile farmland to exhaust with intensive farming. They want very large lots and to do away with the farmers. Saudi leases large tracts of Thai farmland to produce rice for itself. 

Ask yourself why when you drive into Bangkok you don't drive through tens of miles of slums like you would into Delhi, Kolkata, Mexico City or Caracas....it is because farmers in Thailand can still eke out a living by farming and so live on the land. This means they don't migrate to vast slums around the capital city. The last thing Thailand needs is agro-corps like ADM buying up farm land in Thailand. So let's make sure that stimulate the overbuilt condo market isn't the thin end of the wedge for foreigners owning farmland. 

 

1 minute ago, laislica said:

It's a bad idea. 

Land prices will skyrocket and locals, like children will not be able to afford to pay the higher prices. 

Good idea for the estate agents though.

 

See what happened in Spain. 

Locals greedily pushed the price as high as they could, then complained that foreigners had ruined their country.

I would prepare for a backlash on foreigners especially foreigners who owned land.

 

designated areas and restriction for residential use are the answers.

[mrmicbkktxl]

9 minutes ago, tgw said:

@Thai Government:

if you want to attract foreigners of the "better standard", just allow foreigners to buy a single, inheritable, residential property including the land it stands on, in their name in designated areas. period.

 

maybe make the allowed size of the plot depend on the size of the house. small 100m2 house -> up to 1 rai, huge Travolta-style villa of 3000m2 up to 50 rai.

That will get you the people you want to spend money in Thailand.

What's the point of owning a property here if they don't give you a visa?Lifetime visa would work,but that won't happen

[tgw]

1 minute ago, mrmicbkktxl said:

What's the point of owning a property here if they don't give you a visa?Lifetime visa would work,but that won't happen

 

the thing is - if you invest at least 10 million, you also get a visa, that is the current law.

 

so foreigners can right now invest 10 million in a condo and live in Thailand, that is not a problem.

Edited June 10, 2021 by tgw

[rabas]

 

"... proposals from the Tourism Authority of Thailand (TAT)  which aims to attract wealthy foreigners to settle in the counrty long term and in turn help to stimulate the Thai economy..."

 

Applying the same benefits to foreigners for humanitarian reasons such as supporting families and raising children,  remained taboo...

[Trujillo]

Average cost of condos held by farangs is 4.2 million baht, according to the report. Would be interesting to see the numbers in more detail. 

[MadMac]

Getting a Wuhan jab has a higher probability than that. ????

[bkk_bwana]

A key figure in real estate [Pornnarit Chuanchaisit, President of The Thai Real Estate Association] has said that the proposals to ease restrictions on foreign property ownership in Thailand would be a good move, in principle.

 

Well, as Mandy Rice Davis once said "Well he would, wouldn't he"?

[Guderian]

1 hour ago, webfact said:

Thaivisa must stress that so far these are just proposals

 

And that's all you need to know...

[smudger1951]

28 minutes ago, Pedrogaz said:

Rich foreigners are agro-corporations seeking cheap fertile farmland to exhaust with intensive farming. They want very large lots and to do away with the farmers. Saudi leases large tracts of Thai farmland to produce rice for itself. 

Ask yourself why when you drive into Bangkok you don't drive through tens of miles of slums like you would into Delhi, Kolkata, Mexico City or Caracas....it is because farmers in Thailand can still eke out a living by farming and so live on the land. This means they don't migrate to vast slums around the capital city. The last thing Thailand needs is agro-corps like ADM buying up farm land in Thailand. So let's make sure that stimulate the overbuilt condo market isn't the thin end of the wedge for foreigners owning farmland. 

Good post, I agree, the big players like Saudi would eat up the land as you say. The Chinese only buy they never sell. On this one I want Thailand to be for the Thai people. Can I just come back please ?

[Freigeist365]

More smoke screen bombing blahblah with a 99,99% chance of no outcome at all... 

Btw... According to WEF founder Klaus Schwab and his "tze greeeeeaaattt rrrreeesetttt" plans stating;  "You will own nothing, but you will be happy!", we all will be have nots in the near future anyway, so why bother? ????

On my gravestone will be the following inscription: "I spent a good portion of my hard-earned money on booze, motorbikes and b1tches, and I am proud of it!" ????

 

 

[Jimbo2014]

Hmm sounds like a short term fix to a depressed property market.  Doubt the Junta will show much sympathy.  If the doors are opened we can expect certain property to temporarily spike as speculators from China swoop the market.  Longer term Thailand is suffering a population decline and not much short of huge immigration will save it.  Anticipate general property to continue to suffer low demand with but hotspots like Phuket may surge for a long time - pending tourism recovery.

[Pilotman]

'its a good idea' said a man, another said 'yes', another said 'maybe', another ( the one with tanks, submarines, 30 year of F16s and thousands of conscript troops) said no, and the men went silent. 

[buzzz51]

The same drivel comes out every year but nothing ever happens

[Thomas J]

1 hour ago, webfact said:

A key figure in real estate has said that the proposals to ease restrictions on foreign property ownership in Thailand would be a good move, in principle.

 

Be careful what you ask for, it might come true.  Certainly for property owners opening up the availability of buyers would push prices up.  With that said, when foreign money moves in, it drives up the price hurting the "new" Thai buyers.  The local Thai's could easily see their ability to buy a home evaporate.  

Also, when you have foreign money buying business locations, and residential housing they become the controlling parties and the local Thai people lose a good portion of rule over their own country.  

If you look at the USA where it is legal for foreigners to own property such desirable locations such as Hawaii and California have had foreign money drive up the price of housing to astronomical levels.  Housing in Hawaii is driven in large part by the influx of both wealthy Chinese and Japanese who view the price of Hawaii real estate a bargain compared to their native Bejing, Hong Kong, or Tokyo.  All that is great for the existing homeowner in Hawaii but it has priced the housing market out of reach for the majority of the next generation of native Hawaii citizens. 

Personally, though I might like to purchase a home here in Thailand, I believe that the moves by Thailand to protect its sovereignty, and culture are wise moves.  The restrictions do not hamper foreigners who wish to reside in Thailand long term.  There is no shortage of rentals.  Should demand ever outstrip supply I am sure there would be investors building single family homes with the intent that they become rentals for foreigners.  

[2009]

Okay....thanks, I guess ????????????

 

Wow, wouldn't I just love to be able to own an asset that increases less than 5% a year at best, and is virtually impossible to sell.....ooh...sign me up!

 

If they would stop building so much, I'd consider it an investment.

 

And Thailand ain't gonna see the growth over the next 10 years as it did over the last.

 

Why would I buy a Thai property now when I could just buy the S&P500 and in 10 years I will be able to buy 3 of them instead? 

 

That's the way it would have worked if you had invested in the S&P a decade ago vs. a condo here - 3 for the price of 1!

 

And the housing market has done even worse than the condo market which I will never understand, but anyway...

 

 

Edited June 10, 2021 by 2009

[Neeranam]

Of course he thinks it's a good idea so he can sell foreigners property at inflated prices, but will never happen in my lifetime, I hope. 

 

It was the Japanese that were the cause of this happening in RG he first place, not the Chinese 

[scorecard]

45 minutes ago, laislica said:

It's a bad idea. 

Land prices will skyrocket and locals, like children will not be able to afford to pay the higher prices. 

Good idea for the estate agents though.

 

See what happened in Spain. 

Locals greedily pushed the price as high as they could, then complained that foreigners had ruined their country.

I would prepare for a backlash on foreigners especially foreigners who owned land.

"Good idea for the estate agents though."

 

That's what the proposal is all about, nothing more, nothing less.

 

Is there any special/specific reasoning of why it's philosophically a good idea? NO, never is.

[Justgrazing]

1 hour ago, webfact said:

 

Any change to the law regarding foreigners owning land in Thailand is likely to be a long and drawn out process and could take years before it even gets to the point of being considered by law makers,

 

They can make a snail look like an Olympic sprinter when they choose to .. don't expect any meaningful progress on this if any ..

[Neeranam]

3 minutes ago, 2009 said:

Why would I buy a Thai property now when I could just buy the S&P500 and in 10 years I will be able to buy 3 of them instead? 

I'm buying a house to live in and as my legacy to my offspring. Do you rent? 

Why would I buy the SP500 when I can buy bitcoin? 

 

[Almer]

Ive got special skills that are badly needed,  driving instructor.

[sead]

1 hour ago, laislica said:

It's a bad idea. 

Land prices will skyrocket and locals, like children will not be able to afford to pay the higher prices. 

Good idea for the estate agents though.

 

See what happened in Spain. 

Locals greedily pushed the price as high as they could, then complained that foreigners had ruined their country.

I would prepare for a backlash on foreigners especially foreigners who owned land.

Land prices..... 

Can they be higher ????