Review Underway for Quota on Foreign Condo Ownership
The Thai government is currently examining the possibility of increasing the allowable foreign ownership share in condominiums from 49% of a building’s usable space to 75%. Deputy Prime Minister Phumtham Wechayachai shared this development.
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The Ministry of Interior has also been tasked with evaluating whether extending the leasehold period for foreign property owners from 50 to 99 years is appropriate. This proposal emerged during a cabinet meeting in April as part of the government’s efforts to boost the economy and attract foreign investment.
Executives in the local property industry are advocating to adjust the foreign ownership limit, citing increased demand from foreign buyers. Simultaneously, elevated household debt levels and stricter lending conditions have impacted local buyers’ interest in properties. Consequently, developers have become more prudent.
In 2023, foreign buyers were involved in 14,449 condo transfers, marking a 25% increase from the previous year. The total value of these transactions rose by 23.5% to 73.1 billion baht, surpassing pre-pandemic levels.
Among nationalities, the Chinese led the way, accounting for 45.8% of the total units transferred and 46.7% of the overall value. Russians, Americans, and Myanmar nationals followed suit.
Foreign demand for Thai condos is expected to surge in the near future, driven by increased interest from buyers abroad and the possible increase in foreign freehold quota, if and when happens.
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