The Cabinet approved on September 14, 2021, the proposal from the National Economic and Social Development Council (NESDC) regarding 'measures to stimulate the economy and investment by attracting high-potential foreigners to Thailand.' The Real Estate Information Center has compiled statistics on foreign ownership of condominiums nationwide since 2018 to provide insights into foreign real estate ownership in Thailand.

Dr. Vichai Viratakpan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center, stated that the overall statistics on foreign ownership of condominiums reveal that from 2018 to 2020, the total area of condominium ownership transferred was 1,408,310 square meters. The top three regions for ownership area are: 1) Bangkok and its vicinity at 777,961 square meters, 2) Eastern region at 433,399 square meters, and 3) Northern region at 102,902 square meters.

The top five provinces with the highest area of condominium ownership transferred by foreigners are:

1) Bangkok 49.4%

2) Chonburi 30.2%

3) Chiang Mai 7.1%

4) Phuket 4.9%

5) Samut Prakan 4.5%

"We must acknowledge that some projects in certain areas, such as Phuket, Chonburi, or the CBD of Bangkok, may have a demand for condominium ownership exceeding 49%. In such cases, consideration should be given to increasing the ownership ratio above 49%."

For some areas in certain provinces, this could meet the purchasing demand and stimulate the economy. Alternatively, we could clearly stipulate that for foreign ownership exceeding 49%, the condominium must have a total price exceeding 10 million baht, and there should be a provision that foreign voting rights do not exceed 49% of the total ownership ratio regarding regulations of the juristic person to ensure that the management rights remain with Thai holders as the majority.

Considering the overall ratio of condominium ownership transferred by foreigners nationwide, foreigners hold an average of only 10.7% of the total condominium area.

The top three regions with the highest ratio of condominium ownership transferred by foreigners are:

1) Eastern region 29.7%

2) Northern region 20%

3) Southern region 16.5%

In the Bangkok and vicinity area, where foreigners hold the most condominium ownership, the ratio of condominium ownership transferred by foreigners is only about 7.6%. The ownership ratio of condominiums of about 20% or more typically involves units priced around 5 to 20 million baht.

The total number of residential units purchased by foreigners nationwide from 2018 to 2020 was 34,653 units, valued at 145.598 billion baht, categorized by the top five nationalities of buyers:

1) Chinese nationality holds ownership in Bangkok, Chonburi, and Samut Prakan.

2) Russian nationality holds ownership in Chonburi, Phuket, and Prachuap Khiri Khan.

3) British nationality holds ownership in Chonburi, Bangkok, and Chiang Mai.

4) French nationality holds ownership in Chonburi, Bangkok, and Phuket.

5) Japanese nationality holds ownership in Bangkok, Chonburi, and Samut Prakan.

Prior to the COVID-19 pandemic in 2018 and 2019, the average annual transfer of condominium ownership by foreigners was 13,183 units, valued at an average of 53.932 billion baht. However, during the COVID-19 pandemic in 2020, the number of transfers dropped to approximately 8,285 units, valued at about 37.716 billion baht.

In the first half of 2021, approximately 4,358 units were transferred, valued at about 20.449 billion baht, mostly from transactions made before the COVID-19 pandemic in 2018 and 2019.

Additionally, the Real Estate Information Center has also compiled statistics on long-term property rentals (contracts exceeding 3 years) from 2018 to 2020, finding that foreigners registered approximately 1,483 rental units, valued at 5.389 billion baht. Most of these were in the southern region, totaling 1,172 units valued at 4.417 billion baht, followed by the eastern region with 164 units valued at 388 million baht, and the northern region with 96 units valued at 436 million baht, primarily in Phuket, Chonburi, Chiang Mai, Samut Prakan, Rayong, and Prachuap Khiri Khan.

These were mostly condominium rentals rather than single-family homes. The Real Estate Information Center continues to develop data collection on foreign ownership and long-term rentals to report ongoing trends.

From 2018 to the first half of 2021, foreigners purchased and transferred approximately 39,000 condominium units in Thailand, valued at about 166 billion baht, averaging 12,000 units per year with a value of about 50 billion baht. This indicates that in the past, foreigners purchased about 10% of the units in terms of quantity and 17% in terms of value, with relatively few long-term rentals.

Therefore, the measures to stimulate the economy and investment by attracting high-potential foreigners to Thailand, which allow wealthy foreigners to own more residential properties than currently permitted, if achieved according to the government's goals, could help stimulate the economy to some extent. However, implementing this will take time, involving legal amendments, regulatory frameworks, and detailed operational guidelines.