Speaking at an estate trade event, Finance Minister Apisak Tantivorawong said his ministry is studying a way to grant foreigners 50-year leases to Thai land, though the actual plot owners would still need to be Thai nationals. Under Thai law, foreigners cannot own land. In practice, many foreigners resort to using Thai proxies, often established through private companies, to own land or homes on their behalf, which can prove legally precarious when disputes arise. Atip Bhijanonda, chairman the developers association which hosted Thursday’s event, praised the finance ministry’s proposal.
He urged the government to go a big step farther and allow foreigners to actually buy and own lands in their own name. “Thai people are strange. When they send their children to study abroad, they buy houses for their kids,” Atip said. “But when foreigners come here, invest here and give their money to us, we don’t let them have their own homes. This is selfish thinking.” Apisak hoped the policy would rekindle the kingdom’s real estate boom, as demand for land would potentially pour in from around the world.
Finance Minister Apisak Tantivorawong Atip, the housing association chairman, said the proposal is a “correct idea.” Thai law allows foreigners to lease factories and commercial buildings for 50 years, yet they can only lease houses and residential buildings for 30 years, and the discrepancy doesn’t make sense, Atip said. The move to revise the leasehold act and extend the lease period from 30 years to 50 years will be good for developers who offer residential homes to foreigners, both in Bangkok and at tourist destinations, property experts said. “This act will support developers who develop property to serve the demand only from foreigners,” Issara Boonyong, chief executive officer of Kanda Group, said.
The managing director of property agency firm Jones Lang Lasalle (Thailand), Suphin Mechuchep, said recently the move would boost foreign investors’ confidence to expand their investment in the property market when the leasehold is extended from 30 years to 50 years. When foreign investors have a leasehold contract for only 30 years, they have concerns about the future even though the land owner may promise them that they can renew for another 30 years, as there is always the possibility of the land owner changing his mind during the interim period. Longterm contracts will create more confidence for foreign investors to expand their investment in Thailand’s real estate market, she said.
“When the revised act comes into effect, it will open up the opportunity for foreign buyers to hold residential leases as in Singapore and Malaysia. It would boost residential demand when the country is becoming the gateway to the ASEAN Economic Community,” said Thai Condominium Association president Prasert Taedullayasatit, who is also president for premium market at Pruksa Real Estate. If the government approves extending leasehold from 30 years to 50 years, it will join other countries in ASEAN offering longer leasehold tenure.
Vietnam revised its law last year, allowing foreigners to extend their property ownership after their 50-year ownership period expires under the Housing Law, for an additional 50 years, according to Viet Nam News. Singapore and Malaysia lead the way in ASEAN in terms of opening up opportunities for foreign investors, with maximum 99-year leases, which are far longer than any offered by other member states. Cambodia, Myanmar and the Philippines are also offering 50-year leases to foreign investors, while Laos and Indonesia allow a 30-year lease on land to foreigners, according to a report by property agency CB Richard Ellis
– khaosodenglish.com/ – The Nation