Developers are proposing to increase condominium ownership quotas for foreigners in tourist areas as demand for property in Thailand rises.
Foreign condominium ownership quotas are to be increased in some areas of Thailand to stimulate the economy, as demand from foreign buyers last year is expected to continue to rise this year, according to the Bangkok Post.
Brenton Mauriello, chief executive of SET-listed developer Raimon Land, believes the foreign ownership quota for condominiums should be increased from 49 to 60 per cent.
‘This makes a huge difference and will not negatively impact the country,’ Brenton said.
Vichai Viratkapan, acting director-general of the Real Estate Information Centre, said several projects have fully occupied quotas for foreigners to buy condominiums in popular tourist destinations such as Phuket and Pattaya.
‘Some places are not attracting Thai buyers, so the government needs to increase quotas for foreigners to own property in these areas to stimulate the economy as the condominium market depends on foreign demand,’ Wichai said.
Some projects, such as Laguna Lakelands in Phuket, have solved the problem by setting aside flats in each development for buy-to-let leases, with prices 10-15 per cent lower than ownership units, as most buyers are foreigners.
According to Real Estate Information Centre statistics, the number of condominium transfer transactions to foreigners in 2023 was 14’449 units worth 73.1 billion baht, up 25% and 23.5% from before the pandemic.
‘The main factors remain the positive effect of opening up after the pandemic in 2021, visa exemption for Chinese and Kazakhs last year and ongoing geopolitical conflicts,’ Vichai told Vichai.
Chinese are the largest group buying condominiums in Thailand. Chinese nationals accounted for 45.8 per cent of condos and 46.7 per cent of the value. Russians, Americans and Myanmar nationals follow the Chinese.
The most popular price range was 3 million baht and below at 49.4%, while the most popular size was 31-60 square metres (50.3%).
Chonburi recorded the highest number of condominium transfers to foreigners, a first in the resort town’s history. The number of condominiums sold accounted for 41.1 per cent of the country’s transactions. Bangkok follows Chonburi with 38 per cent.
In 2023, the proportion of foreigners buying condominiums in Thailand rose in both the number of units and value to 13.4 per cent and 24 per cent, respectively. This compares with 10.8 per cent and 20.5 per cent in 2022 and is higher than the 10.1 per cent and 15.6 per cent in 2019.
‘The figures show that foreign demand has recovered, and this momentum will continue this year,’ Vichai said.
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