Thai PM Defends Changes to Property Rules for Foreign Buyers

[webfact]

 

Prime Minister Srettha Thavisin today defended new regulations easing property restrictions for foreign buyers in a bid to attract international investment.

 

The controversial changes would allow foreigners to own up to 75% of condominium units and extend property leases to 99 years. This move, widely criticized for favouring capitalists, aligns with international practices, according to the Prime Minister.

 

In his speech, Thailand PM Srettha emphasized that many countries already permit similar property arrangements for foreigners without negative impacts. "Leaseholds are already available to foreigners," he stated, addressing concerns that the new rules might disadvantage Thai citizens.

 

To maintain Thai control of condominium buildings, the regulations ensure that voting rights remain restricted to units within the traditional 49% foreign ownership limit. "This will guarantee that Thais retain a 51% majority control," Srettha explained.

 

Foreigners purchasing units in the additional 26% will have no voting rights, ensuring they can only use the properties for personal residence.

 

Regarding the extension of leaseholds, Thai law currently allows a 30-year term with a possible extension of another 30 years, a private arrangement between the involved parties.

 

The new proposal will increase this to a total of 99 years. "Although a 50+50 leasehold was considered, a 99-year period seems more practical," PM Srettha noted.

 

He reassured the public that this is not an outright sale of Thai land. The proposal to allow foreigners to buy land was firmly rejected.

 

"We are aligning with international norms rather than making an unprecedented change," he added, stressing the benefits of long-term leases without compromising national land ownership.

 

Srettha's defence of the policy shifts reflected a balance between attracting foreign investment and maintaining control over national property. Whether these changes will produce the desired positive outcomes remains to be seen.

 

Picture courtesy:Thai Rath via MSN

 

-- 2024-06-24

 

Get our Daily Newsletter - Click HERE to subscribe

[scubascuba3]

Get on with it and stop just talking about it

[bkk6060]

Russians and Chinese will take over buildings even more.  

[DjSilver]

Maybe also allow foreigners to own land, like in democratic countries. But since Thailand is around 70 years behind western democratic countries we might have to wait until the year 2100?

[jippytum]

The Pm and Thaksin's Families both own large property companies  selling condos. Just saying!! 

[ChasingTheSun]

As usual, nothing confirmed and no details given.

 

Sounds like the typical floating of ideas.

 

[Captain Monday]

International norms? Pfft

 

The whole faux Nationalist foreign ownership cap should be scrapped. It does nothing but REDUCE the value of Thai owned units in profects that are extremely well subscribed by Foreigners.

Althought I don't pay much attention to my unit holdings  as I am invested in  well managed properties I would be somewhat more  reluctant to buy a Condo with no voting rights.

[IamNoone88]

Zenophobia holding back progress.

[Mickboy]

Yes but will they change it back like the cannabis ruling ???+?

[wombat]

99 year leases on farm land will make farm land out of the reach of Thai people.

[wombat]

1 minute ago, Mickboy said:

Yes but will they change it back like the cannabis ruling ???+?

Those changes are proposals and that's where they will stay.

[hotchilli]

3 hours ago, webfact said:

Prime Minister Srettha Thavisin today defended new regulations easing property restrictions for foreign buyers in a bid to attract international investment.

Keep the Thai developers from going broke as Thais cannot afford to buy property.

[hotchilli]

59 minutes ago, bkk6060 said:

Russians and Chinese will take over buildings even more.  

And developers will be rubbing their hands together.

[BoganInParasite]

27 minutes ago, DjSilver said:

Maybe also allow foreigners to own land, like in democratic countries. But since Thailand is around 70 years behind western democratic countries we might have to wait until the year 2100?

Perhaps mandate the foreigner must live on land they are permitted to purchase would go some way to alleviating the concern that too much land would become foreign owned.

[realfunster]

20 minutes ago, wombat said:

99 year leases on farm land will make farm land out of the reach of Thai people.

Quite possibly but overseas investment might also help modernize the Thai agricultural industry and increase yields. The smallholder model is a nice social idea but it’s difficult to manage in the modern and competitive world. How many times do you see various farm produce organisations coming out cap in hand to the government to get subsidies.

[bob smith]

Never. Gonna. Happen.

 

bob.

[RichardColeman]

Anyone that buys a property in a country they have to get a visa to live in is a fool in my opinion, you are always one political change away from homelessness - assuming you are not daft enough to sell your home country property.

 

My house is about 3 million baht, my rent is about 10k a month. so I would have to live in it for about 26 years to make it even worthwhile to me to buy it. I do not think most of the people currently on this site have 26 years of life left !

[Thingamabob]

Ridiculous to be floating this idea while, at the same time, proposing increased taxes on foreign remittances and overseas income.

[Karlik Pu]

Amazing…   Rolling out a red carpet for puti-russian thugs and Chinese mafia in real estate business…

[Mugi]

Must pay 35% tax by transferring the money for buying a condo?

[SABloke]

4 hours ago, webfact said:

Foreigners purchasing units in the additional 26% will have no voting rights, ensuring they can only use the properties for personal residence.

 

Well, there go all the theories about the 49% voting rights being shared proportionately by the foreign quota. And what a complicated extra step - now a buyer will have to know whether they are part of the 49% normal or 26% extra quota. Also, can one change from one to the other? Once again, Thai politicians take a simple process and complicate it (with good reason: grey areas are easier to manipulate when required) 

[klauskunkel]

With Inepticism being the only clear ideology of this government, I do advise to just sit back and enjoy what's coming.

[OldmanJ]

The Chinese and or Russians will soon be building there ports for docking there ships,maybe even military ships and the government will soon see that this is such a big mistake they made.

AS USUAL.

[ChipButty]

1 hour ago, jippytum said:

The Pm and Thaksin's Families both own large property companies  selling condos. Just saying!! 

Thanks for letting us know that,

[soalbundy]

Seems a bit desperate.

[sqwakvfr]

He had no choice but the float this idea.  The neighboring countries have and will allow foreigners(especially those with the money) to have equal access to property ownership.  Of course LOS will never be anything like Singapore( where the only language that matters is $$$) but at least this PM understands LOS mut stay competive. 

 

Next idea might to offer citizenship or at least PR for any foreinger that invests a large amonut money(at least millions of $$$)  into property ownership. For instance Jeju S. Korea has program that a who foreinger purchases a property with at least a value of $500,000 can be granted 10 Residency that is renewable.  

[CM Dad]

International practices also allow the foreign spouses - both male and female - of a country's citizens to be treated equally.  In Thailand they are not.  As the husband of a Thai female citizen I must show a minimum monthly income or keep a minimum of 400,000 baht in the bank to be allowed to continue staying in Thailand with my Thai family.  However, my foreign female friend (We are from the same country) who is married to a Thai male citizen does not have any financial requirements regarding her ability to stay in Thailand with her Thai family. 

Now that same-sex marriage is going to be allowed, perhaps I should divorce my wife and marry her brother or uncle then perhaps I would be treated equally "aligned with international practices". 

[spidermike007]

This will most likely effect the lower end buildings, which are way over built. They are utterly desperate. The economy is in tatters. None of the simple minded economic proposals are working. 

 

It won't make much difference and it won't drive up prices much. The market is very soft. 

 

More liberal ownership laws for foreigners is more in keeping with the 21st century. Foreigners should also be able to buy small amounts of land. 

[CM Dad]

I also bought land and built a house for my Thai family - all in my wife's name - investing several million baht in the country.  However, if my wife dies before I do, I will not be allowed to continue living there.

[pomchop]

3 hours ago, bkk6060 said:

Russians and Chinese will take over buildings even more.  

You got that right.  Here comes the invasion with 99 year leases....take a look at shianokville in cambodia.

 

Thailand has a lot of "cheap land" compared to many other areas of the world and no doubt the chinese would love to control a few million acres of prime rice and ag land not to mention entire sections of costal water front lands with row after row of ocean front condos. 

 

The overall idea is not well tought out and once again it's "fire ready aim".  Except this idea could have massive repercussions for a century or more.