by Willie Tan | Aug 14, 2024 | Bangkok Property Market Updates, Legal, Tax & Due Diligence
The government is advancing a bill to legalise casinos within entertainment complexes across the country. According to sources, the Finance Ministry has completed drafting the Entertainment Complex Act. The bill will undergo a public hearing as required by Section 77 of the constitution, ensuring public input before being presented to the cabinet for review.
Why the move?
Deputy Prime Minister and Commerce Minister Phumtham Wechayachai confirmed that coalition party leaders will meet today to discuss the bill, which aims to legalise and regulate casinos as part of the broader entertainment industry. The bill argues that such complexes can significantly boost tourism revenue and domestic investment.
How does it work?
Under the proposed legislation, entertainment complexes must obtain a license valid for up to 30 years, with an initial registration fee of 5 billion baht and an annual payment of 1 billion baht. The license can be renewed for an additional 10 years after the initial period. Entry to these complexes is restricted to individuals over 20 years old, with Thai citizens required to pay a 5,000 baht entrance fee.
The bill also establishes a policy board, chaired by the prime minister, to oversee regulations governing these complexes. According to Mr. Chai, the project could have a substantial economic impact, with the global casino-based entertainment complex industry projected to grow from USD 1.5 trillion in 2022 to USD 2.2 trillion by 2028. He emphasised the need for Thailand to expedite its plans to capture a share of this lucrative market.
A House committee report estimates that the project could generate at least 12 billion baht in taxes in its first year. The report examined the economic, social, cultural, and legal implications of the initiative, identifying five potential locations: two in Bangkok, and one each in the Eastern Economic Corridor, Chiang Mai, and Phuket.
However, Pariyes Angkurakitti, a spokesman for the opposition Thai Sang Thai Party, criticised the project, warning that lax law enforcement could undermine efforts to properly regulate the casino industry.
by Willie Tan | Aug 14, 2024 | Bangkok Property Market Updates, Expat Living & Relocation
Thailand has launched new visa programs designed to facilitate extended stays and remote work, aligning with a global trend of attracting higher-spending visitors with a smaller impact.
Content Creator Steve Lim’s Unexpected Journey to Thailand
Steve Lim, a content creator from New Zealand, never intended to settle in Thailand; his original destination was New York. However, during a brief stopover in Bangkok in 2022, his U.S. visa fell through, forcing him to reconsider his plans. Despite initial uncertainties, the Thai capital, once unfamiliar and emerging from the pandemic, became his home. Now, at 27, Mr. Lim works remotely in business development for a Chinese firm, thriving in what he describes as Southeast Asia’s “hub of creativity.”
‘Ignite Thailand’s Tourism’ campaign
Recognising the growing appeal to digital nomads like Lim, the Thai government has introduced new visa schemes under the ‘Ignite Thailand’s Tourism’ campaign to make extended stays easier. Mr Nithee Seeprae, a deputy governor at the Tourism Authority of Thailand (TAT), emphasised that these policies are designed to boost tourism revenue, enhance regional competitiveness, and attract business investors. Among the new offerings is the Destination Thailand Visa (DTV), which allows remote workers, freelancers, and digital nomads to stay in Thailand for up to five years, with multiple entries and an application fee of 10,000 Thai baht (USD 285). Other visa changes include expanded visa-free entry for nationals of 93 countries and extended stay options for graduates of Thai universities.
For Lim, who has dealt with short-term visas throughout his time in Bangkok, the new DTV is a welcome relief. He initially relied on a holiday visa, frequently leaving and re-entering the country to renew his stay, which led to burnout. Eventually, he switched to an education visa to study the Thai language remotely, though he knew this was only temporary. With the new DTV, Lim and others in his network see a chance to secure their future in Thailand.
What is the current travel trend?
The travel industry is seeing a trend towards longer stays and higher spending, with Thailand experiencing a shift in visitor behaviour. According to Olivier Ponti, director of intelligence and marketing at ForwardKeys, 25% of visitors to Thailand now stay for over two weeks, and stays of 22 nights or more have fully recovered to pre-pandemic levels.
In response to this trend, other Southeast Asian countries like Indonesia and Malaysia have also introduced long-term visa options for digital nomads. Peter Guis, owner of TMT Visa Service Phuket, noted the immediate interest in Thailand’s DTV, though he acknowledged uncertainties about its long-term impact. Stephen Noton, international marketing advisor for Tourism.co.th, added that broader economic factors, such as global inflation and airline prices, will influence the success of these initiatives.
Quality Over Quantity
Thailand’s focus on attracting “quality over quantity” tourists aims to bring both economic and social benefits, according to Paul Pruangkarn, chief of staff at the Pacific Asia Travel Association (PATA). He emphasised the need for balance, as the government targets 40 million visitors in 2024 while ensuring sustainable industry growth and social harmony. Infrastructure improvements, including airport expansions and a high-speed rail network, are planned to support this growth and enhance the tourist experience.
In the competitive tourism landscape, Pruangkarn expects continued adaptation of immigration policies. Although Thailand may have been slower to welcome this new wave of remote workers, the country now recognises their value. “You have to stay competitive,” he said, “and ensure you’re one step ahead of your neighbours.”
by Willie Tan | Aug 14, 2024 | Bangkok Property Market Updates, Infrastructure & Urban Development
Bangkok Shopping Centres Report Strong Recovery in H2 2023, Driven by Foreign Tourism
The Bangkok shopping centre sector has shown a robust recovery in the second half of 2023, largely fueled by an influx of international tourists, according to RETalk Asia. Despite challenges from e-commerce competition and the COVID-19 crisis, shopping centres, including those managed by Central and Robinson groups, now hold about 27% of the market. Hypermarkets account for 28%, while The Mall Group, Siam Piwat, LH Group, Seacon Square, and Future Park hold smaller shares.
Real Estate Careers in Malaysia Surge Amid Market Recovery
Malaysia’s real estate sector is witnessing significant career growth as the market recovers, reports Bernama. AFZ Realty Sdn Bhd Managing Director, Afizan Mohktar, highlighted the rising demand for real estate consultants, who are crucial in sustaining property development and driving industry progress.
Indian Developer Zoya Developments to Invest AED2 Billion in UAE Market
Indian real estate developer Zoya Developments has announced its entry into the UAE market, with plans to invest over AED2 billion in the next three years, as reported by PropertyNews.ae. Their first Dubai project, located in the Furjan area, is set for completion by 2026 and aims to set new benchmarks in residential living with modern design and smart home technology. Zoya Developments, renowned in India for delivering over 100,000 units and developing more than two million square feet of prime real estate, will focus on prime locations in Dubai, including Furjan, Dubai Islands, and JVT.
by Daryl Lum | Aug 13, 2024 | Bangkok Property Market Updates, New Launches & Project Previews
The number of new condominium launches in Greater Bangkok is anticipated to be below expectations this year, mainly due to subdued demand amidst an economic downturn, as reported by Colliers Thailand.
Phattarachai Taweewong, Director of Research at Colliers Thailand, highlighted that the condominium market in Greater Bangkok experienced a slowdown in the second quarter of this year, driven by sluggish economic growth in Thailand and a weakening global economy.
“The overall condominium market in Bangkok has decelerated, with a lack of significant demand drivers,” Mr. Phattarachai explained.
“In the mid to lower-end market segment, buyers are grappling with high household debt, elevated interest rates, and a high rate of mortgage rejections from banks.”
Colliers’ market analysis revealed that in the second quarter, 5,386 new condominium units were launched across 15 projects in Greater Bangkok, with a combined value of 35.6 billion baht.
Of these, approximately 1,000 units from four projects were in the high-end segment, located in inner-city areas, and achieved a sales rate of 65%. The remaining units, situated outside the city centre, saw a sales rate of only 30%.
In total, the first half of 2024 saw 8,674 new condominium units launched in Greater Bangkok, with a combined value of 49.3 billion baht. This represents nearly a 50% decline compared to the 15,413 units launched in the same period last year.
Despite the significant drop in the number of units, the sales value for the first half of 2024 showed a slight increase from 48.6 billion baht in the first half of 2023. This was primarily due to the fact that the majority of units launched in the first half of 2023 were in the lower-priced segment.
Mr. Phattarachai anticipates that new condominium launches in Greater Bangkok will not exceed 25,000 units this year, falling short of the 30,000-35,000 units projected in the first quarter.
“Developers observed that sales in the second quarter did not meet expectations,” he said.
“Even with property tax incentives in place, the transfer of residential units is expected to decline this year compared to last year due to banks’ mortgage rejections.”
These incentives include reducing transfer and mortgage fees to 0.01% each, down from 2% and 1% respectively, for residential units priced below 7 million baht. These measures will remain effective until the end of this year.
As of the end of the first half of 2024, the condominium inventory in Greater Bangkok stood at approximately 56,800 units.
Given the current weak demand, it is estimated that it will take 84 months to clear this inventory, compared to 60 months under more favourable economic conditions, Mr. Phattarachai noted.
by Willie Tan | Aug 9, 2024 | Bangkok Property Market Updates, Expat Living & Relocation, Legal, Tax & Due Diligence
Thailand’s comprehensive revamp of visa and entry regulations has elicited a range of reactions, from enthusiasm to confusion and some frustration. To shed light on the new rules, Naruchai Ninnad, Deputy Director-General of the Department of Consular Affairs at Thailand’s Ministry of Foreign Affairs, addressed questions during the Bangkok Post’s Deeper Dive vodcast.
Destination Thailand visa (DTV)
A key highlight is the introduction of the five-year Destination Thailand visa (DTV), which allows stays of up to 180 days, extendable to one year. However, eligibility is restricted to three specific categories.
The first category targets digital nomads or freelancers paid by employers outside Thailand. Naruchai explained, “You can work remotely in Thailand as long as your employer and income are based abroad. Documentation like a payslip or a letter from your employer is required.” The second category includes those relocating to Thailand for specific activities, such as Muay Thai training, cooking classes, medical treatment, or attending events. Applicants must provide proof, such as an appointment or event ticket. The third category covers individuals with spouses or children in Thailand, requiring proof of relationship. This visa can serve as an alternative to the category O spousal visa but must be renewed every six months and requires at least one exit from the country per year.
The DTV does not mandate health insurance but requires proof of at least 500,000 baht in assets, held anywhere globally. Naruchai stressed that qualifying for the visa also depends on fitting into one of the defined categories, not just financial capability.
He also clarified that the DTV cannot substitute the one-year retirement visa unless the applicant qualifies under a different category, and addressed concerns that the DTV might be seen as a cheaper alternative to the Elite visa, noting that each visa offers different benefits.
Another significant change is the expansion of countries eligible for visa-free entry from 57 to 93, including China and India. The entry stamp duration has been extended from 30 to 60 days, with an additional 30-day extension available at an immigration office. Naruchai noted that there’s no limit on the number of entries per year, and entrants must show access to at least 20,000 baht, though a return or onward ticket is only required upon request by immigration officials.
Visa on arrival
The number of countries eligible for a visa on arrival has also increased from 19 to 31, though this option is less favourable due to its 2,000 baht cost and 15-day validity. Naruchai emphasized that immigration officers would grant the most beneficial option, citing that Chinese citizens would receive a 60-day visa exemption over a visa on arrival.
Non-ED Plus visa
Additionally, a new Non-ED Plus visa has been introduced for the 40,000 foreign students at Thai universities pursuing Bachelor’s degrees or higher. This visa allows for a one-year stay after graduation to seek employment in their field. Those already in Thailand on an ED visa and who meet the ED Plus criteria will automatically be upgraded, eliminating the need for a re-entry permit.
Despite these updates, other visas and the controversial 90-day reporting requirement remain unchanged. However, the health insurance requirement for the retirement and spousal visas has been reduced from 3 million baht to 400,000 baht.
Regarding concerns about foreign criminals, Naruchai assured that security measures remain robust. While pre-screening for the 97 countries may not occur before entry, arrivals will still undergo security checks using the same database. Recent incidents involving foreign criminals and corrupt immigration officials have highlighted these issues, but strict regulations and screenings aim to ensure security while avoiding undue burdens on law-abiding expats.
