The government is considering increasing the allowable foreign ownership in condominiums from 49% to 75% of a building’s usable space, Deputy Prime Minister Phumtham Wechayachai announced.

 

The Ministry of Interior has also been tasked with evaluating the potential extension of property leaseholds for foreigners from 50 years to 99 years, Phumtham informed the press on Friday.

 

This initiative was initially proposed during a cabinet meeting in April, as part of the government’s efforts to boost the economy and attract foreign investment.

 

Local property industry leaders have been advocating for a revision of the foreign ownership cap, citing growing demand from international buyers.

 

Concurrently, high household debt levels and stricter lending conditions have dampened property demand among local buyers, prompting developers to proceed with caution.

 

According to the Real Estate Information Center (REIC), the number of land allocation permits nationwide fell by 19.7% in the first quarter of this year, marking the largest decline in nine quarters, as developers adapted to consecutive drops in low-rise house transfers.

 

The REIC has highlighted that foreign ownership quotas for condos in popular destinations like Phuket and Pattaya are fully occupied in several projects.

 

“Certain areas do not attract domestic buyers, so increasing foreign ownership quotas in those regions could stimulate the economy, as the condo market there relies heavily on foreign demand,” said Vichai Viratkapan, acting director-general of the REIC.

 

Some projects have responded by setting aside units for leasehold contracts, priced 10-15% lower than freehold units, to cater to the predominantly foreign buyers.

 

In 2023, foreign condo transfers totaled 14,449 units, a 25% increase from the previous year, with transaction value rising by 23.5% to 73.1 billion baht, surpassing pre-pandemic levels, according to the REIC.

 

Chinese buyers led the market, accounting for 45.8% of the units transferred and 46.7% of the total value, followed by buyers from Russia, the United States, and Myanmar.

 

Source: Bangkok Post

 

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