Thailand’s Property Law Revision Sparks Potential Surge in Foreign Investment
Thailand is poised to witness a surge in foreign investment in its property market following proposed revisions to the country’s property ownership laws. The Real Estate Information Center (REIC) predicts a significant uptick in annual registrations of houses and condominiums by foreigners, potentially surpassing pre-pandemic levels by a substantial margin.
During the pre-pandemic period, annual non-resident purchases amounted to approximately 50 billion baht, with most transactions involving properties in the lower price range. However, with the easing of ownership rules, the government aims to attract more wealthy international buyers by allowing them to purchase residential land, provided they invest a minimum of 40 million baht for at least three years. Presently, non-residents are restricted to owning condominium units.
The proposed changes come amidst efforts to accelerate Thailand’s post-pandemic economic recovery. The average price of foreign transfer ownership stands at 108,133 baht per square meter, with Taiwanese buyers leading in average price per unit, followed closely by Chinese investors.
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Chinese nationals emerged as the predominant foreign buyers in the second quarter of 2022, comprising 25.3% of total unit transfers nationwide. This surge in foreign interest underscores the growing appeal of Thailand’s property market to international investors.
Under the proposed regulations, foreign individuals may acquire land up to a maximum area of 1 rai (1,600 square meters), intended solely for self-residency. The land must be located within specified areas outlined by urban planning laws.
The revisions also include provisions for periodic review and revision every five years to adapt to evolving circumstances. The Ministry of Interior is spearheading the submission of the draft regulation to the Office of the Council of State for consideration, signaling the government’s commitment to fostering a conducive environment for foreign investment.
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Overall, the proposed revisions represent a significant step towards attracting foreign capital and stimulating economic growth in Thailand’s property sector. If approved, they could unlock new opportunities for international buyers and further solidify Thailand’s position as an attractive destination for property investment.