New Thai Property Ownership law could Lure more Wealthy International Buyers

Non-resident buying of Thai properties could more than double that of pre-pandemic levels amid government easing of ownership rules, according to a REIC report.

According to the Real Estate Information Center (REIC), annual registrations of houses and condominiums by foreigners could potentially reach upwards of 100 billion baht (US$2.6 billion) when the proposed easing kicks off.

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According to REIC, annual non-resident purchases were about 50 billion baht during the pre-pandemic period, but most of the unis transferred were in the low-price range (less than 5 million baht) and only 8.7% of units were purchased with price levels greater than 10 million baht.

108,133 baht/square meter average price

The average price of foreign transfer ownership (per sq.m.) is at 108,133 baht/square meter. The nationality that buys condominium unit at the highest average price per square meter is Taiwanese, with an average price per unit at 155,085 baht/square meter, followed by Chinese, with an average price per unit at 129,353 baht/sq m.

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Foreign buyers are back in Thailand’s property market

Report on the situation of transfer of condominium ownership by foreigners in the second quarter of 2022. It is expected to open to foreigners to buy houses and land.may push the transfer value to a hundred billion baht
Source : รัฐบาลไทย-ข่าวทำเนียบรัฐบาล-รายงานสถานการณ์การโอนกรรมสิทธิ์ห้องชุดของคนต่างชาติ ไตรมาส 2 ปี 2565 คาดการณ์เปิดให้ต่างชาติซื้อบ้านและที่ดิน อาจดันมูลค่าการโอนฯเพิ่มสูงได้แสนล้านบาท (thaigov.go.th)

The government aims to accelerate Thailand’s post-pandemic economic recovery by allowing foreigners to purchase residential land if they invest a minimum of 40 million baht for at least three years. Non-residents are currently only allowed to own condominium units.

Real Estate Information Center (REIC) Government Housing BankReport on the overall situation of condominium ownership transfers to foreigners nationwide in the second quarter of 2022, found that 2,326 units of condominium ownership transfers to foreigners nationwide, an increase of 15.1% from the same period last year (YoY).

The price with most transfers (81.9%), is not more than 5 million baht and the size of the condominium with most ownership transfer does not exceed 60 square meters.

5 million baht average price

The average price of condominiums transferred by foreigners in the second quarter of 2022 is 5 million baht/unit, with ownership transfers in the price range not exceeding 3 million baht, accounting for 46.4%, followed by 3 to 5 million baht, accounting for 25.5%, and price levels 5 to 7.5 million baht, accounting for 12.9%, and price levels 7.5 – 10 million baht, accounting for 6.5%. Only 8.7% of units were purchased with price levels greater than 10 million baht.

The highest number of foreign ownership transfer are in the top 5 areas : namely Bangkok, Chonburi, Samut Prakan, phu*ket and Chiang Mai.

Chinese buyers top the list

In the second quarter of 2022, Chinese nationals were the nationality with the most unit transfer units nationwide, 2,072 units or 25.3%. The four nationalities with the second highest number of unit transfer units were Russia at 263 or 3.2%, the United States at 228 units or 2.8. % United Kingdom of 167 units or 2.0% and Germany of 160 units or 2.0%.

Following Cabinet endorsem*nt last week, the proposal has been forwarded to the Office of the Council of State and relevant government agencies for further assessment before receiving final approval.

Maximum area set to 1 rai (1,600 square meters)

The amount of land that may be acquired shall be no more than 1 rai (1,600 square meters). The land must only be used for self-residency and must be located within Bangkok, Pattaya, municipalities, or other suitable areas as stipulated by the urban planning law.

The alien acquiring land must invest no less than 40 million baht in a business or enterprise and retain the investment for at least 3 years.

The spokesman said the prime minister has affirmed the ministerial regulation can be revised every 5 years to accommodate the circ*mstances at the time. The Ministry of Interior will now submit the draft regulation to the Office of the Council of State for consideration.