Chinese, Russian, and Myanmar nationals have emerged as the leading foreign buyers of condominium units in Thailand, with 14,500 units worth about 73 billion baht acquired last year. This data, provided by Interior Minister Anutin Charnvirakul, highlights a significant trend in the country’s real estate sector.
In 2019, prior to the COVID-19 pandemic, these three nationalities collectively purchased 13,000 units valued at approximately 57 billion baht. The pandemic in 2020 saw a sharp decline in purchases, dropping to 8,000 units. However, the market showed resilience, bouncing back to 11,500 units in 2022, reflecting post-pandemic recovery.
Anutin pointed out that this upward trend indicates growing foreign demand for condominium units, particularly in Phuket. The high occupancy rates have led some new condo owners to opt for leasehold contracts extending up to 30 years.
Wichai Virattakaphan, an inspector at the Government Housing Bank, elaborated on property ownership regulations. He explained that while foreigners can own land and houses in Thailand, it must be done through a legal entity where they can hold a maximum of 49% ownership. In contrast, foreigners can directly own up to 49% of the units in a condominium development.
The prospect of allowing foreigners to own more than 49% of condo units was considered during Prime Minister Prayut Chan-o-cha’s administration. However, this proposal faced significant opposition and was eventually abandoned. Similarly, a proposal to permit foreigners to own 0.16 hectares (one rai) of land, provided they invest over 40 million baht (approximately one million US dollars) in the country, was also shelved due to concerns that the investment threshold was insufficient.
These developments underscore the ongoing interest and complexities surrounding foreign investment in Thailand’s real estate market, particularly in the condominium sector.
Anutin Charnvirakul, Wichai Virattakaphan, and Prayut Chan-o-cha were mentioned in this report.
