Controversy Erupts as Thailand Considers Lifting Constraints on Foreign Condo Purchases

Thailand's proposal to raise the foreign ownership cap on condos to 75% from 49% has drawn criticism, with opponents fearing it will undermine the interests of locals. The move, aimed at boosting the sluggish property market, includes extending the land lease for foreigners to 99 years. Critics argue the changes will encourage overseas buyers, while hindering Thais' access to affordable housing. The government maintains that the proposals do not involve selling national land and emphasizes that foreign ownership will not come with increased voting rights.

The recent proposal by the Thai government to raise the foreign ownership cap on condominiums to 75% and extend land leases to 99 years has sparked heated debates among Thais, with critics fearing that this move will undermine local interests and hinder access to affordable housing.

Prime Minister Srettha Thavisin, in his defense of the policy, emphasized that the proposal was made as part of an economic stimulus strategy and was not designed to favor foreigners or major investors. However, opponents, such as former Move Forward leader Pita Limjaroenrat, argue that the priority should be ensuring more property ownership for Thais (1).

The current law allows for a maximum of 49% foreign ownership in condominium projects, while leasehold interests in Thailand are limited to 30 years (2). The government's intention to extend these limits is based on the belief that it will make the market more equitable and encourage foreign investment (1).

Critics, however, argue that extending foreign ownership to 75% and lease terms to 99 years will encourage overseas buyers, potentially leading to a decrease in available housing for Thais. The opposition party has also expressed its intention to challenge the proposal in administrative court (2).

It is worth noting that despite the concerns raised, the government maintains that foreign ownership will not come with increased voting rights and that the extension is a lease, not a sale (1).

This controversial move comes at a time when Thai politics is becoming increasingly polarized, and further opposition is expected. As the debate surrounding the proposal continues, it remains to be seen whether the benefits of foreign investment will outweigh the potential consequences for local interests.

Sources:
[1] Thailand to Extend Land Leases to 99 Years and Foreign Condo Ownership to 75% - Thailand Business News
[2] PM Srettha Defends Plan to Let Foreigners Buy More Condos and to Extend Lease Terms Up to 99 Years - The Thaiger Examiner