Thailand would do better to create a sound investment environment with improved and more transparent regulatory and legal structures to make investors feel that it is worth doing business in the country. ![]() It will exacerbate the inequality in land ownership.īeyond Phuea Thai’s concerns, it is not clear that easing restrictions on land ownership will be the magic formula to kickstart the Thai economy that the Prayuth government hopes for. ![]() The party reasons that nearly 80 per cent of Thais do not own any land and that allowing foreigners to buy land will benefit the more affluent segments of Thai society with land to sell. These concerns have led the opposition Phuea Thai Party to oppose the scheme. In addition, increased foreign purchases of luxury dwellings will intensify perceptions of inequality and rising land prices will worsen the actual inequality. Foreigners may begin to invest freely in property, but whether they will reside in the country is another matter. The proposed plan may well increase land tax revenue and benefit the Thais fiscally but its political and social ramifications merit careful consideration. Data from 2020 indicates that there were more than 90,000 unsold condominium units in just the Bangkok metropolitan region. On one level, this proposal addresses a clear problem for Thailand: The current supply of residences far exceeds demand. The stated goal of the policy is to boost the Thai economy by luring wealthy foreigners to spend and invest in the country.įoreign nationals who invest 40 million baht (US$1.1 million) in property, securities or funds in Thailand over a period of three years would, starting in September, be permitted to own up to 1 rai (about 1,600 sq m) of land. On Jul 15, the government of Prime Minister Prayut Chan-o-cha unveiled a proposed policy to allow foreigners to own land for residential use. With Bangkok now keen to attract wealthy investors - especially the Chinese - to aid Thailand’s post-pandemic recovery, the government is contemplating a major change in the laws governing foreign ownership of real estate. BANGKOK: Thailand has long been a popular destination for foreign investment and expatriate retirement but has severely restricted foreigners from owning Thai land.
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