Is It 40% Or 49%?

[chiangmaibruce]

Some of you would have noticed an item in the BKK Post today by a real estate agent Neil Simmons, extract below:

Most developers and government officials agree that foreigners can buy up to 49% of the units in any one condominium building. However, the law used to limit foreign ownership at 40%, and this was increased to 49% on a five-year basis. This five-year period has now expired and so the limit should revert back to 40%. However, most people are still working on the 49% rule, meaning that many new condominium units perhaps are being sold to foreigners illegally.

I would be interested in checking this out - Can anyone point me towards the regulation that enacted the 49% rule? Presumably that would mention the 5 year time frame of validity. Thanks

- CB

[chiang mai]

Well spotted and very very interesting, I also will be extremely interested to learn of the answer.

[chiangmaibruce]

OK well i've been rummaging in the Dept of Lands web site and came across the following:

http://www.dol.go.th/guide/condo_080745_eng.htm

I think the guy in the BKK post is incorrect. Yes the allowance did move from 40% to 49%, BUT the provisions that were to expire/be amended after five years appear to relate to those buildings which have sought and obtained special approval for foreigners to buy more than 49%

Perhaps one of our resident lawyers or property experts might kindly read this linked doc and confirm my interpretation? Thanks

- CB

[quiksilva]

I know Neil but yes he is mistaken this time. The time he is referring to is the 5 year period when foreigners could purchase up to 100% of a condominium project, it was introduced in 1998/99 to reinvigorate the property market, but it hardly made any impact at all.

Edited July 30, 2008 by quiksilva

[tangoll]

I think the 49% limit also refers to the available area for sale of a condominium building/project, and not the number of units as mentioned in the article.

[alive555]

its 49% of the saleable m2 not the number of units.

[pkrv]

its 49% of the saleable m2 not the number of units.

Yes its 49% of the saleable m2, though this can be 'somewhat imaginative'