Thailand Plans to Simplify Real Estate Laws
The authorities of the Kingdom are preparing significant changes to real estate legislation. According to media reports, the Department of Lands in Thailand plans to present a bill to the Cabinet that would allow foreign property owners to extend the lease term on land to 99 years and increase the foreign ownership quota in condominiums to 75%.
Commenting on the news, Interior Minister Anutin Charnvirakul stated that he has already instructed the department to review the bill for any legal loopholes that could violate the constitutional rights of Thai citizens. Mr. Anutin also clarified that the legislative changes are aimed solely at stimulating the local economy. It is expected that easing foreign ownership regulations will attract even more foreign investment to Thailand.
Prime Minister Srettha Thavisin, speaking at a press conference about the upcoming amendments, emphasized that a nearly century-long lease on land does not mean full ownership for foreign investors. According to the Prime Minister, extending the lease term simply enhances the country's competitiveness in the global real estate market.
Extending the lease term to 99 years is seen as a significant and somewhat revolutionary step for conservative Thailand, where most Southeast Asian countries offer foreigners a maximum lease term of 70 to 80 years. Increasing the foreign ownership quota in condominiums from the current 49% to the proposed 75% is expected to lead to a rise in property prices in areas popular with foreigners, such as Bangkok, Pattaya, and Phuket.
Certain Thai businessmen and real estate experts note that if this idea is implemented, it will significantly boost the real estate market and GDP, but at the same time, land prices are also likely to rise.
Meanwhile, Thai real estate expert Dr. Sopon Pornchokchai has suggested that the government also take measures to stimulate the sale of unsold condominium units.
It should be noted that on June 21, 2024, the Office of the Secretary of the Cabinet of Thailand announced urgent measures to stimulate the economy through the real estate sector. These measures are aimed at attracting as many potential investors to the country as possible. This decision followed a letter from the Cabinet Secretary on April 9, 2024, emphasizing the government's intention to boost the economy through real estate and prepare Thailand to become a global industrial hub.