The government's plan to amend laws to allow "wealthy foreign investors" to purchase real estate, including "condominiums and single-family homes," aims to attract foreign capital to help revive the economy post-COVID. Following recent news, developers in the real estate sector have expressed both support and opposition to this idea.

            Mr. Simon Lee, Chairman of Angel Real Estate Consultancy Co., Ltd. (ARE), a leading marketing and sales consultancy in Thailand, particularly regarding foreign quotas, stated that he supports the government's initiative to temporarily amend relevant laws to expand the rights for foreigners to purchase condominiums and to unlock the ability for them to buy single-family homes. This would attract more foreigners to buy, reside, and invest in Thailand more conveniently and enticingly.

“Real estate is one of the factors that can rapidly drive the country's economy during a crisis like this, potentially increasing GDP value by up to five times compared to other investments,” Mr. Simon Lee stated.

          Allowing foreigners to purchase real estate in the post-COVID-19 period over the next 3-5 years is believed to attract more foreign buyers to Thailand, especially for single-family homes. Chinese and Singaporean buyers predominantly seek to purchase freehold homes in Thailand as a “second home” rather than leasehold properties.

            “This idea will encourage foreigners to live in Thailand, bringing foreign capital as new purchasing power to stimulate domestic business and revive the economy. While foreigners will gain ownership rights, it will still be under the laws and regulations of Thailand,”

            The amendment of land laws to allow foreigners to generally purchase single-family homes should be limited to purchases within “housing projects.” The price range for purchasing homes should be around 10-15 million baht, or the ceiling price can be set higher to avoid impacting the prices that most Thais can afford. The government must establish clear and stringent guidelines, particularly regarding tax regulations, visas, and adjustments to facilitate compliance with Thai laws and regulations.

          Importantly, the government must find a way to set conditions for monitoring foreigners in housing projects in the future to prevent speculative buying and selling, price inflation, and should limit purchases in projects to a clear proportion to avoid disturbing the living conditions of Thais. Additionally, foreigners should only be allowed to purchase single-family homes to prevent impacts on the prices of townhomes and duplexes.

          As for condominiums, the government is considering expanding the ceiling for foreign ownership to 70-80% to help clear stock. This is believed to be a good opportunity for both small and large developers to increase sales in the 3-10 million baht condominium segment during this period.

            However, luxury and super-luxury condominiums may be affected as wealthy foreign buyers may shift towards purchasing single-family homes at similar price levels. Regarding the management system after increasing the ceiling for ownership, allowing foreigners to own more than 49% of condominiums should grant them voting rights in community meetings proportional to their actual ownership. However, voting rights and opinions should only be adjusted for certain legal provisions that allow foreigners to vote without impacting Thai ownership rights.