Thailand Unveils 99-Year Land Lease Policy to Attract Investors

[snoop1130]

 

In a significant effort to boost foreign investment, Thailand is planning to extend its land lease terms from 30 to 99 years. Deputy Prime Minister and Finance Minister Pichai Chunhavajira announced this proposal at the CEO Econmas Awards 2024, signalling a potential paradigm shift for global investors looking at long-term ventures in Thailand.

 

This proposal aligns with Thailand’s 2025 strategic vision, which aims to unlock opportunities and foster economic growth. With more than 300 million rai of land and a population of 67 million, Thailand offers vast potential for development.

 

The upgraded policy focuses on providing security for investors by guaranteeing various rights such as land use, trade, and loan leveraging. Once the 99-year lease period concludes, the assets will revert to the state, with plans to redistribute them to benefit low-income families, thus highlighting the government’s commitment to balancing economic gains and social welfare.

 

Further, the Treasury Department and the State Railway of Thailand aim to make idle state land available in prime urban locations like Silom and Sukhumvit for affordable housing. These 99-year leases will be priced at 30% below market rates, catering to low-income residents and easing their access to central job opportunities by reducing commuting costs.

 

While this bold move has generated enthusiasm among investors, it has also sparked debate. Land rights are a sensitive topic in Thailand, and the proposed changes have led to spirited discussions. With the government eager to implement these plans, there remains uncertainty over whether they will become law. The matter is under scrutiny, as the impact on both the economy and the local population could be profound.

 

File photo for reference only

 

-- 2024-11-01

 

 

[0ffshore360]

The truth will be in the details

 

[Foxx]

1 minute ago, snoop1130 said:

Once the 99-year lease period concludes, the assets will revert to the state, with plans to redistribute them to benefit low-income families

 

So, the government has no intention of eliminating poverty in Thailand even a century from now.

[ukrules]

"Revert to the State" - this means they're going to allow the government to lease out government land, undercutting everyone else and then they get it all back after 99 years.

No mention of private leases for 99 years?

 

[redwood1]

Revert to low income my azz....Future pigs will be feasting on a deal like this when the 99 years is up.... 

[hotchilli]

12 hours ago, snoop1130 said:

In a significant effort to boost foreign investment, Thailand is planning to extend its land lease terms from 30 to 99 years.

No thanks....

[rwill]

So if a person owns land and gives someone a 99 year lease on it they lose their land at the end of the lease?

[john donson]

hahaha, low income... on paper, but in reality, will be some high up's relatives that invented it or connection with land department

 

99 years, or upon death of the buyer... 

[Foxx]

2 hours ago, rwill said:

So if a person owns land and gives someone a 99 year lease on it they lose their land at the end of the lease?

 

Yes.  The government gets it.

[AndreasHG]

I hope the Thai government makes something out of this proposal. It seems sensible to me. similar to what is done in many other countries, starting with the Netherlands and the Bahamas, where public owned land is available as leasehold.

 

[Will B Good]

 

Quick...where's my cheque book.

[newnative]

     I would have absolutely no interest in this.  I would rather buy property in my Thai spouse's name, which I have done.  

[bbi1]

3 hours ago, rwill said:

So if a person owns land and gives someone a 99 year lease on it they lose their land at the end of the lease?

They don't "lose their land at the end of the lease", they never had any land that they owned. They were merely tenants of the landlord and the landlord owned the land. If the landlord doesn't renew their lease, they as a tenant would need to move out of the land they occupied.

[Jimjim1]

Well I suppose after 99years the lessee will be dead anyway, but anyone buying into this scam is a complete fool.

Thais can go to any country and buy up land and property with complete impunity, owning every scrap of it, selling anytime they want and keeping every penny they earn from it but here the foreigner pays for the home and land immediately gives away 51% thereby losing full control of his / her money and at best get a 30 year lease which is unlikely to be renewed unless a further price is paid at the exorbitant will of the person who got the original 51% for free.

 

Would it not be better to lobby one’s home government to remove the imbalance until the Thai government allows the foreigner to retain all rights over his / her money and assets.

 

A pipe dream yes but not beyond the bounds of possibility if every expat came together, in the UK it only takes a 100,000 votes to get a matter such as the above discussed and voted on in parliament and if all facts are properly placed before the MPs and made aware of the injustice, the removal of the rights of Thais to do as they please in our country until it is reciprocated is a very real prospect.

All that is needed is the will to raise the matter and if the British government agrees to act I can assure you that the rest of the world will soon follow.

[CallumWK]

5 hours ago, rwill said:

So if a person owns land and gives someone a 99 year lease on it they lose their land at the end of the lease?

 

These 99 year leases apply only to government owned land.  For private land owners it is still only 30 years maximum

[watchcat]

On 11/1/2024 at 10:56 AM, ukrules said:

"Revert to the State" - this means they're going to allow the government to lease out government land, undercutting everyone else and then they get it all back after 99 years.

No mention of private leases for 99 years?

 

 

What's your life expectancy,

[ukrules]

7 hours ago, watchcat said:

 

What's your life expectancy,

 

Doesn't matter, my point is - this 99 year lease which has been touted as a change to the regular 30 year leases doesn't appear to be for normal leases - it appears to only be for leases directly from the state to big business when leasing out government land.

Personally a 30 year lease is plenty for me as I'm in my 50's and I would likely purchase additional years in the coming 10 to 20 years anyway.

But you're not buying a holiday home with a 99 year lease issued directly from the government on government land - that's nonsense.

[DonniePeverley]

Very bad news for the Thai population.

 

When property in a developing nation is being used as investment for foreigners - prices will surge for locals, in a nation where not everyone is doing well. 

 

Disgraceful and all protectionisms Thai's have had in the past has been slowly and rather quietly been thrown out the window.