To circumvent the law on foreign quotas on real estate, the Thai Finance Ministry proposes allowing condominiums to be leased for 99 years instead of sold.
Thailand is developing an ambitious project that could significantly change the country’s property market. According to the Thai News Agency, the Thai government is considering allowing foreigners to lease condominiums for up to 99 years.
Thailand’s Deputy Prime Minister and Finance Minister, Pichai Chunhawajira, confirmed that the government is actively promoting the initiative. The project aims to stimulate the property sector, which faces a severe problem with more than 200,000 unsold flats.
In his speech at the Sustainable Property Market Development conference, Pichai acknowledged that the property market faces difficult times. Rising household debt is preventing locals from buying homes, posing a risk to the country’s economy as a whole.
The Finance Ministry believes that allowing foreigners to rent condominiums for 99 years could effectively solve the problem. However, to avoid speculation and protect the interests of the local population, it is planned to introduce several restrictions:
- Specific zones will be defined where foreigners will be allowed long-term leases.
- The minimum value of a flat for such a lease will be 30-40 million baht (approximately US$850,000 – US$1,130,000).
- Foreigners will only receive the right of use, while ownership will remain with the landlord.
It is important to note that the measure does not require any change in legislation but only clear guidelines and terms of the lease.
The minister emphasised that this decision is not a ‘sell-out of the country’, as some critics fear. On the contrary, it aims to stimulate the economy and address the surplus of unsold housing.
In addition, the Ministry of Finance is considering developing state-owned land for leasing to foreign tenants. This project is under study and, if successfully implemented, could bring additional benefits to the Thai economy.
Experts note that such practices are familiar to the region. For example, Singapore has long had a system of 99-year property leases, which successfully attracts foreign investors and contributes to developing the property market.
However, some analysts warn of possible risks, such as rising property prices, which could make it less affordable for the local population. Therefore, the government must carefully consider all aspects of this initiative and strike a balance between stimulating the economy and protecting the interests of Thai citizens.
The Thai government is expected to present a more detailed plan for the initiative in the coming months. Experts and the public eagerly await more information on the specific mechanisms for implementing the project and its potential impact on the country’s economy.
It is worth noting that Thailand is one of many Southeast Asian countries considering such measures to stimulate the property market. For example, Malaysia already has the ‘Malaysia My Second Home’ programme, which allows foreigners to purchase real estate under certain conditions.
Interestingly, this initiative may also impact Thailand’s tourism sector. The possibility of long-term rentals may attract investors and retirees from other countries looking for a comfortable place to stay with a favourable climate.
However, some economists warn that the situation needs to be monitored closely. They note that such measures may create a ‘bubble’ in the property market if adequate regulatory mechanisms are not provided.
In addition, it is essential to consider the social aspects of such a decision. Some activists express concern that an increase in the number of foreign tenants could change the cultural landscape of some parts of Thailand.
Overall, the initiative represents a bold move by the Thai government to address the problems of the property market and stimulate the economy; however, like any large-scale economic decision, it requires careful planning and a measured approach.
The global community is watching the situation in Thailand with interest. The success or failure of this initiative could be an important lesson for other developing countries facing similar economic challenges.
In conclusion, this initiative is part of the Thai government’s broader strategy to attract foreign investment and stimulate economic growth. These measures are hoped to help the country overcome its current financial difficulties and build a solid foundation for sustainable development in the future.
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