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 Development Business Association, the Thai Condominium Association, the Thai Real Estate Association, the Home Builder Business 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 opinions that:

  1. Due to the need for economic and social development in the country, which aims to attract foreign investment, the demand for stability in foreign residency follows suit. Extending the lease period from 30 years to 99 years and recognizing leases as property rights is considered a sufficiently stable duration. This will ensure that foreign residency leases are conducted legally, transparently, and can be verified, thus addressing issues related to the illegal purchase or lease of residences 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 amount of land available for foreign leasing, etc.

The direct benefits to Thai citizens from the lease extension include the availability of a significant amount of land, both in urban and rural areas across all provinces, which belongs to the state or state agencies, as well as private land that is not intended for sale. Long-term lease rights will serve as a guarantee that allows Thai citizens to invest long-term in housing, agriculture, industry, and other businesses, including using lease agreements as collateral for loans from financial institutions and as inheritances.

  1. 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 residences, resolving issues related to illegal purchases or ownership. This is to prevent indirect land ownership or impacts on Thai citizens' rights to reside in condominiums. Additional regulations may include:
    1. Waiving voting rights for foreigners exceeding 49%.
    2. Limiting land ownership to no more than 5 rai for projects where foreigners hold ownership exceeding 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 going into a fund to support housing for low to middle-income Thai citizens, initiated to reduce long-term disparities.
    4. Other regulations that do not affect the rights and residency of Thai citizens, such as:
      1. The manager and president of the juristic person must be Thai nationals only.
      2. The number of foreign condominium juristic board members must not exceed half of the total board 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 maintaining the rights and voices of existing minority shareholders, etc.
    1. Areas where foreigners are allowed to own condominiums exceeding 49% but not exceeding 75% will not be permitted 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.

There was a previous amendment to the Condominium Act in 1999 allowing 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 Thai citizens' rights to reside in condominiums. During the 5 years when foreigners could own up to 100% of condominiums, there was no negative impact 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 for stimulating the economy, encouraging investment, and establishing a structure for land use and housing that aligns with the changing global economic and social context, significantly contributing to the long-term economic drive of the country.

List of Real Estate Associations:

  1. Mr. Isara Bu. Yang, Honorary President of the Housing Development Business Association
  2. Mr. Wasan Kheang Siri, President of the Housing Development Business Association
  3. Mr. Prasert Baet Dulyasathit, President of the Thai Condominium Association
  4. Mr. Pornarits Chuanchaisit, President of the Thai Real Estate Association
  5. Mr. Olar Chanphu, President of the Home Builder Business Association
  6. Mr. Precha Supapitiporn, President of the Real Estate Sales and Marketing Association
  7. Mr. Prawit Anusiri, President of the Thai Real Estate Broker Association
  8. Mr. Somkiat Jitsangboon, President of the Thai Marble and Granite Association
  9. Mr. Wattanapol Pholchiwin, President of the Chonburi Real Estate Association
  10. Mr. Taiyat Kanjanjitra, President of the Rayong Real Estate Association
  11. Mr. Natthapong Prasarnsivamai, President of the Nakhon Ratchasima Real Estate Association
  12. Mr. Turong Thanapura, President of the Udon Thani Real Estate Association
  13. Mr. Mongkol Liewwattanakul, President of the Phitsanulok Real Estate Association
  14. Mr. Chinna Sutthathanachoti, President of the Chiang Rai Real Estate Association
  15. Mr. Methapong Upatisrung, President of the Phuket Real Estate Association
  16. Mr. Warach Prasuthikun, President of the Songkhla Real Estate Association
  17. Mr. Precha Kulpaithanatham, President of the Nonthaburi Real Estate Trade Association
  18. Mr. Thanawat Poonsilp, President of the Real Estate Association of the Three Southern Border Provinces
  19. Mr. Soranant Seththi, President of the Chiang Mai Real Estate Association