Thailand mulls allowing foreigners to buy 75% of condo units

[webfact]

Picture courtesy: Thai Rath

 

The Thai Cabinet has tasked the Interior Ministry with amending the Condominium Act to increase the foreign ownership limit in condominium projects from 49% to 75%. Additionally, they have been directed to modify the Land Act to allow foreigners to lease land for 99 years, up from the current 50 years.

 

 

Interior Minister Anutin Charnvirakul indicated on Friday that the Land Act requires minimal changes. The existing law already permits a 50-year lease with an option to extend for another 50 years. The amendment aims to ensure foreign investors can secure land for up to 99 years in a single lease contract, enhancing investment confidence and viability.

 

Despite the boost in foreign ownership percentage, control over the developments will remain in Thai hands. Foreigners purchasing up to 75% of condominium units will not gain additional voting rights in the management of these properties, ensuring Thais retain control, Anutin clarified, reported Thai PBS.

 

The push to revise the Condominium Act comes as Thailand faces an oversupply of low and moderately-priced units. The Interior Minister expressed optimism that increasing foreign ownership limits will stimulate this sluggish market segment. This shift, he argues, will benefit both Thailand and its people by promoting economic activity and encouraging foreign investment.

 

The proposed changes mark a significant shift in Thailand’s property market policies, designed to encourage more foreign capital flow into the country. By extending the lease period and increasing allowable foreign ownership, the government aims to make Thailand a more attractive destination for international investors.

 

These amendments, once implemented, could transform the dynamics of Thailand’s real estate market, offering longer-term stability for foreign investors and opening up a wealth of opportunities within the country's property sector. This development underscores Thailand's commitment to economic growth and integration into the global market.

 

-- 2024-06-22

 

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[webfact]

Thailand Considers Allowing Foreigners to Buy 75% of Condo Units

 

Picture courtesy: Wikipedia

 

Thailand's Interior Ministry is examining possible changes to real estate laws to allow foreigners to purchase up to 75% of the total unit space in condominium buildings, an increase from the current limit of 49%. This initiative, reported by Naewna newspaper on June 21, aims to stimulate the economy.

 

In addition to this proposal, officials are also considering extending property lease periods to 99 years. Presently, the maximum duration for property leases is 30 years, with an extension of another 30 years available, albeit generally as a private agreement between the involved parties.

 

Deputy Prime Minister and Commerce Minister Phumtham Wechayachai, acting during Prime Minister Srettha Thavisin's recovery from Covid-19, instructed the Interior Ministry to review property regulations.

 

This directive aligns with the Cabinet's decision on June 18, which focused on economic stimulation through the real estate sector, adhering to Thailand Vision 2030. This vision seeks to establish Thailand as an industrial hub and drive sustainable economic growth.

 

The following proposed changes are under study:

 

- Amending the Property Rights Act B.E. 2562 (2019) to enable lease extensions up to 99 years.

 

- Reviewing laws and regulations to extend the maximum foreign ownership in condominiums from 49% to 75%. However, conditions might be attached, such as limiting the voting rights of foreigners purchasing units over the 49% threshold.

 

This initiative's approval process involves completing the study and forwarding the proposal to the Cabinet for final consideration, reported Thai Newsroom.

 

Thailand's move to attract foreign investment via real estate sector reforms highlights a strategic approach to boosting economic development. While these changes promise significant benefits, they also come with considerations of regulatory balance to maintain national interests.

 

-- 2024-06-22

 

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[stoner]

3 minutes ago, webfact said:

The Thai Cabinet has tasked the Interior Ministry with amending the Condominium Act to increase the foreign ownership limit in condominium projects from 49% to 75%. Additionally, they have been directed to modify the Land Act to allow foreigners to lease land for 99 years, up from the current 50 years.

 

there goes the neighborhood. 

[Tony M]

They can probably see a major tax-grab on funds (income) being transferred, by "tax residents", from overseas to purchase condos in Thailand.

Edited June 22 by Tony M

[redwood1]

1 hour ago, Tony M said:

They can probably see a major tax-grab on funds (income) being transferred, by "tax residents", from overseas to purchase condos in Thailand.

 

Yes I bet your right....$$$ to them has to be involved some where....

[Henryford]

1 hour ago, webfact said:

Thailand Considers Allowing Foreigners to Buy 75% of Condo Units

 

Picture courtesy: Wikipedia

 

Thailand's Interior Ministry is examining possible changes to real estate laws to allow foreigners to purchase up to 75% of the total unit space in condominium buildings, an increase from the current limit of 49%. This initiative, reported by Naewna newspaper on June 21, aims to stimulate the economy.

 

In addition to this proposal, officials are also considering extending property lease periods to 99 years. Presently, the maximum duration for property leases is 30 years, with an extension of another 30 years available, albeit generally as a private agreement between the involved parties.

 

Deputy Prime Minister and Commerce Minister Phumtham Wechayachai, acting during Prime Minister Srettha Thavisin's recovery from Covid-19, instructed the Interior Ministry to review property regulations.

 

This directive aligns with the Cabinet's decision on June 18, which focused on economic stimulation through the real estate sector, adhering to Thailand Vision 2030. This vision seeks to establish Thailand as an industrial hub and drive sustainable economic growth.

 

The following proposed changes are under study:

 

- Amending the Property Rights Act B.E. 2562 (2019) to enable lease extensions up to 99 years.

 

- Reviewing laws and regulations to extend the maximum foreign ownership in condominiums from 49% to 75%. However, conditions might be attached, such as limiting the voting rights of foreigners purchasing units over the 49% threshold.

 

This initiative's approval process involves completing the study and forwarding the proposal to the Cabinet for final consideration, reported Thai Newsroom.

 

Thailand's move to attract foreign investment via real estate sector reforms highlights a strategic approach to boosting economic development. While these changes promise significant benefits, they also come with considerations of regulatory balance to maintain national interests.

 

-- 2024-06-22

 

Get our Daily Newsletter - Click HERE to subscribe

 Who decides who is in the 49-75% category?

Would this mean foreigners could not vote, at say an AGM?

[Karma80]

Need to grab all the Chinese and HK money somehow I guess. Worked out so well for everywhere else that's done this...

Edited June 22 by Karma80

[Emdog]

more ways to screw the Thai people from this horrendous gov

[ikke1959]

not 100% ownership don't buy it.... Thailand can not be trusted with their flip flop laws... and restrictions... How do they think foreigners are?? Come to Thailand pay here tax and if you have to pay tax more in Thailand than in your home country you have to pay the difference anyway in Thailand. As a reward you can't own anything for 100%, have no rights and have to deal with dual pricing, pay extreme taxes on imported goods... Hooray Thailand the hub of chasing away foreigners. expat, retirees and tourists

[OneMoreFarang]

3 hours ago, webfact said:

The push to revise the Condominium Act comes as Thailand faces an oversupply of low and moderately-priced units. The Interior Minister expressed optimism that increasing foreign ownership limits will stimulate this sluggish market segment. This shift, he argues, will benefit both Thailand and its people by promoting economic activity and encouraging foreign investment.

It would be interesting to see some numbers how many condominiums are on the current 50% limit. In Bangkok that seem to be only very few.

[OneMoreFarang]

12 minutes ago, ikke1959 said:

not 100% ownership don't buy it.... Thailand can not be trusted with their flip flop laws... and restrictions... How do they think foreigners are?? Come to Thailand pay here tax and if you have to pay tax more in Thailand than in your home country you have to pay the difference anyway in Thailand. As a reward you can't own anything for 100%, have no rights and have to deal with dual pricing, pay extreme taxes on imported goods... Hooray Thailand the hub of chasing away foreigners. expat, retirees and tourists

I own my condominium unit 100%, in my name. And I am not alone. 

[impulse]

Seeing what's happening to weed, and so many whipsawing immigration policies, why would anyone believe they won't reverse course in a couple of years and decimate the value of that additional 25% of condos?  Or even all condos, when sellers are forced to sell to Thais to get the project back into balance.

 

 

[ChaiyaTH]

15 minutes ago, OneMoreFarang said:

It would be interesting to see some numbers how many condominiums are on the current 50% limit. In Bangkok that seem to be only very few.

Yeah this won't help at all with sales or anything they have in mind, but would be nice regardless if they made it 75% but if you ask me then just make it 100%. Too many other loose ends with Thailand right now, I wonder if they even realize that with the news they send in the world about taxes, they think we just sit back and relax.

 

The land of corrupted smiles.

Edited June 22 by ChaiyaTH

[John Drake]

Make room for the Chinese colonists.

[Nickcage49]

Translated. Condos aren't selling.

[NemoH]

🤣🤣makes no difference actually. The condos the Chinese n the Hongkongers like are usually never liked by the rest of the Thai n the astute foreign/expat population 🤣🤣🤣. So the great parody is that there is zero resale value for such condos except for the Chinese n the Hongkongers selling to each other .. or another suckered foreigner. 
With prices artificially maintained at +10% annually with total disregard of demand n supply and also the fact that prices have now reached Hong Kong n Singapore levels, it will never be bought by local Thais who have plenty of choices throughout the whole of Thailand. 🤣🤣
Such is the reality of Thai real estate. 

Edited June 22 by NemoH

[Hakuna Matata]

OMG, the Chinese and Russian mafia will be very happy!

 

[jippytum]

most condos are already more than 49% foreign owned. i. if you calculate Thai  proxies and company owned units  run by foreigners

 

[mokwit]

Coming next, revamp of hotel and condo act to allow ST lets.

[ronster]

So Thais ain't buying all the empty condos so they want to flog them to russians and Chinese but give them no say in running the buildings 😀🙈

[mokwit]

5 hours ago, webfact said:

Despite the boost in foreign ownership percentage, control over the developments will remain in Thai hands. Foreigners purchasing up to 75% of condominium units will not gain additional voting rights in the management of these properties, ensuring Thais retain control

here, let me fix that:

Despite the boost in foreign ownership percentage, control over the developments will remain in Thai hands. Foreigners purchasing up to 75% of condominium units will not gain additional voting rights in the management of these properties, ensuring problems are never solved.

better?

[Ben Zioner]

39 minutes ago, Nickcage49 said:

Translated. Condos aren't selling.

Good, serves the bustards right.

Edited June 22 by Ben Zioner

[samtam]

3 hours ago, Henryford said:

 Who decides who is in the 49-75% category?

Would this mean foreigners could not vote, at say an AGM?

 

Foreigners can already vote in an AGM and their vote is the same as Thai owners.

 

 

11 minutes ago, ronster said:

So Thais ain't buying all the empty condos so they want to flog them to russians and Chinese but give them no say in running the buildings 😀🙈

 

I am a foreigner with 100% ownership of my condo. I am chairman of the board of the condo. I have as much say as anyone else in the running of the building, (through my vote at the AGM). As it is, my position allows me to have a very large say in how the building is run. Our condo rules specify expenditure limits, significant structural changes etc, that require AGM majority voting. This applies to all owners, irrespective of their nationality.

[khunjeff]

5 hours ago, webfact said:

The existing law already permits a 50-year lease with an option to extend for another 50 years.

 

5 hours ago, webfact said:

Presently, the maximum duration for property leases is 30 years, with an extension of another 30 years available

 

So, which is it? I had always heard 30 years, with no guaranteed extension.

[Polaky]

So the 51% thai or company owned condo's will be sliced to only 25%, and sales from that 26% can be transferred into foreign quota, sounds like prices will fall, as currently foreign quota is approx 25% to 30% more expensive.

[khunjeff]

4 minutes ago, samtam said:

3 hours ago, Henryford said:

 Who decides who is in the 49-75% category?

Would this mean foreigners could not vote, at say an AGM?

 

Foreigners can already vote in an AGM and their vote is the same as Thai owners.

 

The question was not about how things are now, but how they would be under the proposed amended law:

 

5 hours ago, webfact said:

extend the maximum foreign ownership in condominiums from 49% to 75%. However, conditions might be attached, such as limiting the voting rights of foreigners purchasing units over the 49% threshold.

 

[jippytum]

currently you are allowed three votes at the  condo AGM as a maximum regardless of the number of units owned. 

 

[No Forwarding Address]

2 hours ago, ikke1959 said:

not 100% ownership don't buy it.... Thailand can not be trusted with their flip flop laws... and restrictions... How do they think foreigners are?? Come to Thailand pay here tax and if you have to pay tax more in Thailand than in your home country you have to pay the difference anyway in Thailand. As a reward you can't own anything for 100%, have no rights and have to deal with dual pricing, pay extreme taxes on imported goods... Hooray Thailand the hub of chasing away foreigners. expat, retirees and tourists

Don’t know what you are on about, but we all  own 100% of our condos…….the article is changing Foreigner ownership ‘quota' to 75%’of a Condo  Building instead of only 49% with 51% owned by Thais.  In my case, I like it the way it is, all the owners on my floor are rich Thais, that only use their condos on weekends and holiays, got the floor mostly to myself.   Cheers

[loong]

Isn't building condos a significant part of the PM's family business?

[newnative]

3 hours ago, Henryford said:

 Who decides who is in the 49-75% category?

Would this mean foreigners could not vote, at say an AGM?

     Foreign owners would still be allowed to vote at the AGM.  I think the weight of the foreign-owned vote would be limited to 49%.   I believe it's incorrect to state that Thai owners will remain in control with all condo projects.  At the last condo I owned, the foreign owners were clearly in control, holding a majority of the seats on the condo board.  Perhaps someone will correct me if I am wrong but I think there isn't anything in the Condominum Act stating that the condo boards must have a majority of Thai owners.  

     I think the 75% proposal is a good thing, especially for places like Pattaya, where a number of the projects have filled the 49% quota.  This is especially true for some of the less-desirable second tier projects, with foreign quota filled but still having unsold units.  Having more foreign quota might help these projects find some more buyers.