Jump to content

49% Condo Ownership raised to 80%


ozpharlap

Recommended Posts

 

Have to agree with TH on this point as well. I have not heard of any changes on this specific rule.

 

Perhaps your Thai developer wishes they would raise quota. Condo projects are starting to finish now, and supply obviously exceeds demand.

 

 

 

 

Spot on Gaddy, the artilce SD1 linked to was written by Nigel Cornick,CEO of Raimon Land Plc

 

Link to comment
Share on other sites

The main cause for the possible decline is that the foreign quota at 65 projects in Thailand is sold out, while demand is rising as seen in the number of foreign enquiries that are up 10% or more for some developers.

 

From the article. Don't know if this is true, but I do know that when condos are sold here in areas popular with Farangs (e.g., Sukhumvit), the foreign quota units sell faster and command higher prices.

 

And with all the negative press lately about foreigners using "illegal" companies to buy property reserved for Thais, any foreigner current on developments here is going to be much more reluctant to use any structure, legal or otherwise, to acquire any interest (or even have their wives buy) anything that is "reserved for Thais." This can't make developers in areas like Sukhumvit or Phuket happy. You can see why they'd like the law changed.

 

Actually, for virtually all Thais (except the old guard who make the rules), it would be better for Thailand if they elminated, or at least liberalized, these ridiculous protectionist rules. And not just in property, but in business generally.

Link to comment
Share on other sites

Agree. Even with ownership of land, its not going anywhere when a Farang leaves Thailand.

 

The world is changing, and the fact is that Thailand has kept old and nonsensical restrictions on foreign ownership and investment in place while the rest of the world, including S.E. Asia, has opened up. Here it is viewed as foreigner vs. Thai when in fact Thais are the main beneficiaries of a more open economy - well, 99% of Thais.

 

Vested interests that may have to compete with foreigners don't fare well, and that is why Thailand is getting left behind. They don't care what happens to the average Thai. They care only about their own interests.

 

Interesting, isn't it, that the big effort to make the Foreign Business Act (FBA) more restrictive happended when the militairy coup installed government was in place.

Link to comment
Share on other sites

...The world is changing, and the fact is that Thailand has kept old and nonsensical restrictions on foreign ownership and investment in place while the rest of the world, including S.E. Asia, has opened up...

...

 

The only SEA country I know of that has liberalized any foreign land ownership rules is Malaysia, which did so back in 2001 in an attempt to clear the backlog from the 1998 crash. There are still restrictions, the main one being that foreigners can only buy property that cost at least 2.5 million baht. There are still other, more, strict rules for foreign purchase of residential or commercial real estate for investment and not owner occupancy. They include that the purchase must be made through the formation of a Malaysian company and it not only must have 70% ownership by Malaysian citizens, but also 30% ownership by indigenous Malaysians. In addition, in any multi-unit residential development, foreign ownership is limited to specific percentages of overall units based on the type of multi-unit development: 10% of attached and semi-detached homes, 30% of multi-family or vacation homes.

 

Other SEA countries are just as restrictive or much more so then Thailand:

 

*Vietnam does not allow foreign ownership

*Cambodia only allows buildings to be owned, not the land (actually follows the Thai model in most respects)

*Laos does not allow foreign ownership

*Philippine follows Thai model but only allows 40% condo ownership and companies must be 60% Filipino equity and must get BOI approval

*Indonesia does not allow foreign ownership, but does allow long term lease. Keeping mind that Indonesia courts are notorious for not pursuing fair resolution of property disputes.

*Even Singapore restricts foreigners to only condos.

 

If you have different information, please post a link.

TH

 

Link to comment
Share on other sites

Australia also has restrictions but they do allow foreigners to buy and own both land and apartments in Australia.

 

The only stipulation in regards to foreigners owning land/apartments is that it must be new land, such as a recent land sub-division or a freshly built condominium.

 

Condominiums in Australia have a 50% foreign quota attached to them.

 

There are some slight exceptions but it is too long to go into and also, it can be a case by case basis.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...