Following the Cabinet resolution on April 9, 2024, regarding the study of extending lease periods from 30 years to 99 years, and the Cabinet resolution on June 18, 2024, various associations related to the real estate economy, including the Housing Business Association, the Thai Condominium Association, the Thai Real Estate Association, the Home Builder Association, the Real Estate Sales and Marketing Association, the Thai Real Estate Broker Association, the Thai Marble and Granite Association, and the Regional Real Estate Association, totaling 18 associations, have expressed their views as follows:

1. Due to the need for economic and social development in the country, which aims to attract foreign investment, there is also a demand for housing security for foreigners. Extending the lease period from 30 years to 99 years and recognizing leases as property rights is considered a sufficient period of security, which will ensure that foreign housing leases are conducted legally, transparently, and can be verified. This will address issues related to the illegal purchase or leasing of housing by foreigners. Concerns regarding foreigners indirectly holding land or using land for agriculture can be managed through legal frameworks that regulate land use according to urban planning requirements, zoning, or the area allowed for foreign leases, etc.

As for the benefits that Thai citizens will directly receive from the lease extension, there is a significant amount of land, both in urban and rural areas across all provinces, owned by the state or state agencies, as well as private landowners who do not wish to sell their land. Long-term lease rights will provide guarantees that allow Thai citizens to invest long-term in housing, agriculture, industry, and other businesses, as well as use lease agreements as collateral for loans from financial institutions and as inheritable assets.

2. Expanding the foreign ownership limit of condominiums from 49% to 75% will support foreigners who invest or intend to reside in Thailand to legally purchase housing. This will resolve issues related to illegal purchases or ownership of housing. To prevent indirect land ownership or impacts on Thai citizens' rights to reside in condominiums, additional regulations may be established regarding:

  1. Foreigners relinquishing voting rights for shares exceeding 49%.
  2. Limiting land ownership to no more than 5 rai for projects where foreigners hold more than 49% but not exceeding 75%, to prevent indirect land ownership.
  3. Imposing higher registration fees and annual land and building taxes for foreigners compared to Thais, with the excess collected allocated to a fund supporting affordable housing for low to middle-income Thai citizens, initiated to reduce long-term inequality.
  4. Other regulations that do not affect the rights and residence of Thai citizens, such as:
    1. The manager and president of the juristic person must be Thai nationals only.
    2. The number of foreign members on the condominium juristic committee must not exceed half of the total committee members.
    3. Protecting the minority rights of Thai citizens, ensuring that the combined voting rights of foreigners do not exceed the minority rights of Thais in meetings, similar to protecting the rights and votes of existing minority shareholders.
    4. Etc.
    5. The areas where foreigners may hold more than 49% but not exceeding 75% should not be allowed generally in all areas but should be announced by the Ministry from time to time. Initially, this may be limited to three areas: Bangkok, Phuket, and Pattaya.

Previously, the Condominium Act was amended in 1999 to allow foreigners to own up to 100% of condominiums for a period of 5 years to address the economic crisis at that time, along with subordinate laws to prevent impacts on the rights of Thais to reside in condominiums. During the 5 years when foreigners were allowed to own 100% of condominiums, there was no adverse effect on the ability of Thais to purchase or reside in condominiums.

The 18 real estate and related business associations believe that amending both laws will be a crucial tool to stimulate the economy, encourage investment, and establish a land use structure and housing framework that aligns with the changing global economic and social context, playing a significant role in driving the country's economy in the long term.