Property sector welcomes 99-year leases

[webfact]

Property sector welcomes 99-year leases
By Somluck Srimalee
The Nation

 

Prasert Taedullayasatit

 

BANGKOK: -- THE PRIVATE sector has expressed support for the government’s plan to extend long-term 99-year land leases to foreign investors.

 

“If the government opens up the opportunity for foreign buyers to hold residential leases for up to 99 years, like Singapore and Malaysia do, it will boost residential demand as the country is the gateway to the Asean Economic Community [AEC],” said Thai Condominium Association president Prasert Taedullayasatit, who is also president of Premium Market at Pruksa Real Estate Plc.

 

He said longer lease contracts for both residential and commercial property were better for businesses because foreign investors would have confidence to expand on investments in Thailand.

 

“Although the current law allows a 30-year lease contract and a renewal for another 30 years, long-term leases are more reassuring for foreign investors,” he said.

 

Suphin Mechuchep, the managing director of the property agency Jones Lang Lasalle (Thailand), agreed recently that the plan would boost foreign investors’ confidence to expand property investments in the special zones.

 

Renewal option

 

The government’s plan would extend leaseholds in the special economic zones of the Eastern Economic Corridor (EEC) from 30 to 99 years, with an initial lease of up to 50 years and a renewal of up to 49 years.

 

When foreign investors have leasehold contracts for only 30 years, they are concerned about the future even though landowners may promise them that they can renew for another 30 years, real estate experts have said.

 

There is always uncertainty because of the possibility that landowners will change their mind |in the interim period.

 

Issara Boonyong, chief executive officer of Kanda Group and an |adviser of the Business Housing Association, said the extended leasehold contracts from 30 years |to be 99 years, which is limited to the EEC zones, would be seen by foreign investors as a key reason to expand their investments.

 

It will not have any effect on local investors because the leaseholds would not involve the sale of land to foreigners, Issara said.

However, Issara warned that |conditions attached to the leases in regard to what foreigners are permitted to do must be clarified.

 

Source: http://www.nationmultimedia.com/news/national/30313134

 

-- © Copyright The Nation 2017-04-24

[PatOngo]

Please, trust us!

[bristolgeoff]

More new rules to the foreigners,welcome to Thailand.somehow they will lose out

[IamNoone88]

A long overdue and progressive initiative that would be very welcome that will likely be screwed up with revised rules.

[Boycie]

Yet a news story that i have to question the figures. 30 to 99 years, great sales pitch but shouldn't it be from 30 to 50 years or 60 to 99 years? 

 

Why not give a 99 year lease instead of complicating things with a 50+49years agreement?

[SOUTHERNSTAR]

27 minutes ago, IamNoone88 said:

A long overdue and progressive initiative that would be very welcome that will likely be screwed up with revised rules.

It is only for property in these special zones, don't get excited.

[ksamuiguy]

"Trust Me"

In over 40 years in "The Kingdom" I have seen many changes, most for the better, better for those with money and power.

I have seen it to long, it is just to hard. A legal document means nothing here, to many cavorts and exception , changes after the terms or what ever are agreed on.

The trust has disappeared, The country has lost its Credibility, one of the most difficult losses there is to recover from.

Even the proposed change won't help, sorry to say it took years to loose, slowly f^@k the foreigners, I personally believe it is to late to recover. So I believe Thailand is doomed to try and exist on tourism, but again the past is coming back to haunt them. The "Touts" are suffering the most they have been screwing the Tourists for 30 years, now the tourists are organized, tour companies have organized the chaos and plan everything, arrange everything, no surprises. Most tourists are On Vacation and don't want to be bothered, they have a itinerary and follow it, no thinking involved!

 

I see it now when the cruse ships come in to Natorn, everything has been organized by the cruse company, "things" are waiting for them when they arrive. We now see far less "Touts' , taxi's, rouge vans, everything has been arranged before they leave the ship and it works. (85%) take the offered tour or attraction packages offered.

 

Sorry to say that Thailand is no longer the only kid on the block.

Thailand has become the gateway for tourists continuing on to other country destinations.

It reminds me of a "bedroom community" only go there to rest, sleep before going out to other destinations. Like a base of operations, easy for the first time visitor, because this is there one and only ever trip, "once in a life time" You can see it in the number of transfer to other destinations from Thailand. To bad these people are counted as visitors, not transient.

 

[philliphn]

What and where are the, "Special Zones?"

Edited April 24, 2017 by philliphn

[bkkcanuck8]

5 minutes ago, philliphn said:

What and where are the, "Special Zones?"

Not sure where they are - this is old data.... (but they will all be on the border - no where near Bangkok).

 

The 10 SEZs are planned to be located in “Tak and Kanchanaburi” which border Myanmar, “Chiang Rai” on the Thailand-Lao-Myanmar border, “Mukdaharn, Nong Khai and Nakhon Phanom” on Thailand-Laos border, “Trat and Sa Kaew” on the Thailand-Cambodia border, and “Songkhla and Narathiwas” in the southern part of Thailand which borders Malaysia.

[SOUTHERNSTAR]

4 minutes ago, bkkcanuck8 said:

Not sure where they are - this is old data.... (but they will all be on the border - no where near Bangkok).

 

The 10 SEZs are planned to be located in “Tak and Kanchanaburi” which border Myanmar, “Chiang Rai” on the Thailand-Lao-Myanmar border, “Mukdaharn, Nong Khai and Nakhon Phanom” on Thailand-Laos border, “Trat and Sa Kaew” on the Thailand-Cambodia border, and “Songkhla and Narathiwas” in the southern part of Thailand which borders Malaysia.

The ones they are now talking about is the EEC one(s).

[bkkcanuck8]

3 minutes ago, SOUTHERNSTAR said:

The ones they are now talking about is the EEC one(s).

So only the subset on the Cambodian border.... and maybe Mukdaharn?

[Mickmouse1]

50 YEARS...THE 49is not automatic and could be subject to manipulation and arm twisting negotiation as my mate has just experienced in Samui where his remaining lease expired and the owners demanded 20mil B to renew for further 20 years.LOST THE BEACH VILLA

[bkkcanuck8]

Just now, Mickmouse1 said:

50 YEARS...THE 49is not automatic and could be subject to manipulation and arm twisting negotiation as my mate has just experienced in Samui where his remaining lease expired and the owners demanded 20mil B to renew for further 20 years.LOST THE BEACH VILLA

Well, any idiot that believes in any promises after 30 years will be adhered -- gets what they deserve.  

 

The promises are not worth the paper they are written on, and by that time the people making the promises have long disappeared or died.... and heirs would never feel beholden to non-legally binding promises.... things change.

[Chip Allen]

Thailand.....where you're guaranteed to lose.

[kamahele]

A step in the right direction. Of course the actual ability for foreigners to purchase land outright would be much better.....

[Mavrix]

39 minutes ago, philliphn said:

What and where are the, "Special Zones?"

Pattaya Happy Zone ?

[Dukeleto]

1 hour ago, Boycie said:

Yet a news story that i have to question the figures. 30 to 99 years, great sales pitch but shouldn't it be from 30 to 50 years or 60 to 99 years? 

 

Why not give a 99 year lease instead of complicating things with a 50+49years agreement?

Because they must always ensure they have one hand cradling your scrotum ready to squeeze it!

[Dukeleto]

What do they mean "like Malaysia"! Under the Malaysian "My second home" program you own the property and the land outright plus a 10 year visa. Thailand has a loooooooooog road ahead of it before it can compete with that!

[free123]

it will be for business investments ( production plants etc y) only located around the border areas one at the kanchanaburi land crossing to and in Myanmar....it might well help the economic growth...but not for the old time farang he will have the same land lease options as before

 

[DerekMarshall]

 

Quote

“If the government opens up the opportunity for foreign buyers to hold residential leases for up to 99 years, like Singapore and Malaysia do"

In countries where rule of law exists and foreigners can buy freehold (not long term lease) property and obtain renewable 10 year visas (MM2H) with greater confidence trust and be reassured of their visa status and no reporting every 90 days and retire in peace. However, a country where law is seldom applied and little importance depending upon who it applies to, is politically unstable on a perpetual basis and does  not guarantee of long-term visa or status in the country, only being able to buy a long term lease and prices will fluctuate depending on how much a sell thinks they can pull out of the buyer (regardless of market value) barely bestows confidence. 

 

Copying an idea on the system in Malaysia or Singapore does not bring the backwards attitude and mentality of locals in line with more progressive and modern counterparts south of the border! Investing in Malaysia nd Singapore is still a far better and safer option than a country perpetually in political turmoil! 

 

 

[DerekMarshall]

12 minutes ago, kamahele said:

A step in the right direction. Of course the actual ability for foreigners to purchase land outright would be much better.....

Exactly and that is what happens in Malaysia with foreigner being able to buy freehold under MM2H. 

[JSixpack]

56 minutes ago, ksamuiguy said:

 Thailand is doomed to try and exist on tourism

 

No. Ultimately this reflects the classic TVF Poster Golden Egg Layers Theory Of Thai Economics. More about that here: https://www.thaivisa.com/forum/topic/936844-pattaya-going-downhill/?page=31#comment-11359895

 

You can discover the reality here: https://en.wikipedia.org/wiki/Economy_of_Thailand

 

And this new law may be helpful for the other sectors.

 

Quote

, but again the past is coming back to haunt them. The "Touts" are suffering the most they have been screwing the Tourists for 30 years, now the tourists are organized, tour companies have organized the chaos and plan everything, arrange everything, no surprises. Most tourists are On Vacation and don't want to be bothered, they have a itinerary and follow it, no thinking involved!

 

No. We still have plenty of independent travelers, probably more than ever, and now more organized tours as well.

 

Quote

Sorry to say that Thailand is no longer the only kid on the block.

 

It never was. Next.

Edited April 24, 2017 by JSixpack

[jaltsc]

“If the government opens up the opportunity for foreign buyers to hold residential leases for up to 99 years..."

 

"BUYERS"?  What a line of BS. If you can't sell it and keep the proceeds, you are a "RENTER". What the government wants is for foreign investors to come in, build structurally sound houses, improve the property and then take it back without paying one baht for it. If there is a financial emergency, and you need cash, you can sell the lease back at a fraction of what you have invested. 

Edited April 24, 2017 by jaltsc

[hansnl]

2 hours ago, IamNoone88 said:

A long overdue and progressive initiative that would be very welcome that will likely be screwed up with revised rules.

If I read the article, it is in fact a 50 year lease, renewable for another 49 years, but only in special zones.

Nothing for expats.

 

 

[teddog]

Worth 5 million this year,3 million the next

[StefanBBK]

2 hours ago, Boycie said:

Yet a news story that i have to question the figures. 30 to 99 years, great sales pitch but shouldn't it be from 30 to 50 years or 60 to 99 years? 

 

Why not give a 99 year lease instead of complicating things with a 50+49years agreement?

I wanted to comment exactly the same.  

 

Why not do things exactly replicating what Thais can do in foreign countries? i.e. if a Thai can buy freehold land in X Country, people from X Country should be allowed to buy freehold land in Thailand? 

[Thailand]

A lease is a lease is a lease.

This is just another lease idea that is only for a few in special areas.

You have the option of getting screwed after your 30+ lease expires or now after your 50 year lease expires.

[ross163103]

How many years have we heard different things like this, won't believe it until I see it. Just keeps the farangs hoping.......55555555!

[abab]

No problem, you can't get a visa but you can "own" a land for 99 years...

 

Don't worry...

 

 

[williamgeorgeallen]

1 hour ago, kamahele said:

A step in the right direction. Of course the actual ability for foreigners to purchase land outright would be much better.....

i doubt it will really make much difference. guys move to thailand to retire and expire before their leases expire. from my understanding they are non transferable any way.