by wilbersuen | Jun 24, 2024 | News
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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The editorial team at Invest Bangkok Property
by wilbersuen | Jun 17, 2024 | News
The prospect of train travel between Bangkok and Beijing is becoming more tangible as Thailand advances its rail network expansion.
According to the State Railway of Thailand, a trial service between Bangkok and Vientiane, the capital of Laos, is scheduled for July 13-14. Once operational, this new link will enhance transportation between Thailand, Laos, and China, as stated by railway official Ekarat Sriarayanphong.
The inauguration of the Thailand-Laos connection will enable train travel from Bangkok to Beijing, with stops in Vientiane and Kunming, a city in southern China. From Kunming, travelers can board a semi-high-speed train to Beijing.
Covering approximately 3,218 kilometers, the journey will take nearly a full day due to the region’s mountainous terrain. In contrast, a direct flight takes just under five hours.
Currently, a high-speed train between China and Laos facilitates the transport of Thai goods to Kunming, significantly reducing delivery times from two days by truck to 15 hours, as reported by Nikkei.
Thailand aims to strengthen its connectivity with China, its largest trading partner, to stimulate economic growth, which has been lagging behind other regional economies.
From January to November 2023, Thailand’s exports to China reached nearly US$32 billion (S$43 billion), with key exports including fruit and rubber products. Imports from China during the same period were valued at US$65.3 billion, dominated by electric equipment and machinery.
In addition to trade, the two countries are enhancing tourism ties. Chinese visitors can stay in Thailand visa-free for up to 60 days, while Thai tourists can visit China visa-free for 30 days.
The tourism sector is expected to receive a further boost from a separate, albeit delayed, project to establish a high-speed rail system linking Thailand to China through Laos by 2028.
Source: The Straits Times
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The editorial team at Invest Bangkok Property
by wilbersuen | Jun 6, 2024 | News
According to a statement from the Thai government, while Cambodia and Laos have joined the list of countries eligible for a 60-day visa-free stay, Myanmar has not been included. Previously, Myanmar, along with Cambodia and Laos, received only 14-day visas.
Myanmar is not among the 93 countries on Thailand’s newly extended visa-free list, which will take effect on June 1, sources reported.
In an effort to boost tourism, the Thai government has extended the list of 60-day visa-exemption countries, effective June 1. Previously, nationals from certain countries could stay in Thailand for 60 days without a visa. Now, six more countries have been added to this list: China, Laos, Mongolia, Russia, Cambodia, and Macau.
As a result, Myanmar citizens will continue to be limited to a 14-day stay without a visa.
Additionally, a new type of Destination Thailand Visa has been introduced, allowing individuals involved in business, Thai culinary education, art, and traditional Muay Thai boxing to stay for 180 days under the new visa policy.
Currently, more Myanmar nationals are purchasing condos and conducting business in Thailand than in previous years. In the first quarter of this year, Myanmar surpassed Russia to become the second-highest country in terms of condo purchases in Thailand.
Source: The Nation
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The editorial team at Invest Bangkok Property
by wilbersuen | Jun 5, 2024 | News
Noble Development, a company listed on the SET, is shifting its focus to foreign buyers for new condominium projects in Bangkok due to weak domestic demand.
Sira Udol, the Chief Operating Officer for residential real estate at Noble, noted that the Bangkok condo market was unfavorable in the first quarter of this year, impacting the company’s presales.
“The sluggish Thai economy has weakened local demand,” he stated. “To mitigate the impact on our sales, we are strategically targeting the overseas market during economic fluctuations.”
Adopting a one-price policy, which offers the same prices to both Thai and foreign buyers, has resulted in increased sales to foreign buyers each year since the company began targeting them in 2019, according to Mr. Sira.
In 2020, foreign buyers purchased 265 units worth 1.75 billion baht, followed by 432 units worth 2.3 billion in 2021, 607 units worth 2.82 billion in 2022, and 686 units worth 5.24 billion in 2023.
Despite a 16% year-on-year drop in total presales in the first quarter of this year to 3.36 billion baht, sales to foreign buyers reached 2.2 billion baht, accounting for 66% of total sales for the quarter. This figure is nearly half of the total sales to foreign buyers for all of 2023, Mr. Sira reported.
Approximately 80% of this total came from a new project, The Embassy Wireless, which launched internationally in the first quarter before being introduced to the Thai market. Most foreign buyers were from Singapore, Taiwan, Hong Kong, China, and Myanmar, said Mr. Sira.
“While the number of Chinese buyers has decreased since 2022 due to economic struggles, the emerging market in Myanmar has compensated for this decline, outperforming both China and Taiwan in the first quarter of this year,” he explained.
This project is a joint venture between Noble and the Hong Kong-based investment group Hongkong Land. It is located on a 3.33-rai plot on Wireless Road and comprises 757 units valued at 10.9 billion baht, with unit prices starting at 18 million baht.
Noble aims to achieve 6 billion baht in presales from foreign buyers by the end of this year, with the launch of a new high-value condo project in the third quarter, Mr. Sira announced.
The Nue Prime Asok-Rama 9 project, valued at 13.8 billion baht, is situated at the Rama IX-Din Daeng junction.
“We expect this project to attract international buyers due to its favorable location,” he said. “We continue to conduct a series of online and offline activities in key markets, particularly Taiwan and Myanmar, to expand beyond traditional sales channels and capture new customers.”
Source: Bangkok Post
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The editorial team at Invest Bangkok Property
by wilbersuen | May 28, 2024 | News
The high-speed rail project connecting Don Mueang, Suvarnabhumi, and U-Tapao airports is slated to commence operations later this year, following a revised agreement between the government and the project developers.
Anan Phonimdang, Deputy Governor of the State Railway of Thailand (SRT), confirmed that the revised agreement has been approved by the SRT board.
The agreement will be forwarded to the Eastern Economic Corridor (EEC) Policy Committee and the cabinet for further review to ensure the state’s interests are protected. The Notice to Proceed (NTP) is expected to be issued by the end of this year.
Asia Era One, a consortium led by CP Group, won the 224.5 billion baht contract to build the rail system in 2018. However, the project faced delays due to various issues, including the pandemic’s impact.
The SRT and the Office of the EEC have renegotiated parts of the contract with the consortium to ensure project completion.
“The resolution is clear and based on established principles. The company must provide an additional bank guarantee to assure project completion,” said Mr. Anan.
The revised contract addresses four key issues: payment of the joint venture rights, government investment in the project, an additional bank guarantee, and investment promotion privileges.
Under the new terms, Asia Era One will pay the joint venture rights in full, plus interest, totaling 11.7 billion baht, in seven installments.
The government will begin investing in the project 18 months after the NTP is issued, rather than immediately after the trains start operating. The company is required to provide an additional bank guarantee of 111.9 billion baht within 270 days of the contract revision.
Under the original public-private partnership agreement, the government committed to investing 111.9 billion baht in the project, including 3.57 billion baht for land appropriation. The remaining 108.33 billion baht would be paid starting in the sixth year after train operations commence.
Asia Era One has requested the government to compensate for ongoing construction work.
For the NTP to be issued, the company must first receive an investment promotion certificate from the Board of Investment. However, this requirement has been waived following the review process that concluded on May 22, said Mr. Anan.
If the NTP is issued as planned, the construction is expected to be completed by 2029.
Source: Bangkok Post
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The editorial team at Invest Bangkok Property
