Several properties in Chiang Mai have been confiscated after being linked to Chinese nominees, as the local government intensifies efforts to regulate foreign ownership in the real estate market. This crackdown follows a surge in Chinese investment in the region, leading to concerns over legal compliance and the rights of Thai citizens.
Key Takeaways
- Chiang Mai authorities confiscated properties linked to Chinese nominees.
- The crackdown aims to protect Thai land ownership rights.
- Two residential projects were identified as violating the Land Law.
- The government is enforcing strict regulations on foreign ownership.
Background
Since the reopening of Thailand post-COVID-19, there has been a notable influx of Chinese investors into the Chiang Mai real estate market. This trend has resulted in the establishment of entire communities, particularly in the Hang Dong and San Kamphaeng districts, where the majority of residents are Chinese nationals. The phenomenon has raised alarms regarding the legality of property ownership, as many of these investments are facilitated through nominee companies.
Government Response
In response to these developments, Chiang Mai Governor Nirant Pongsitthavorn has directed local officials to investigate and take action against properties operating under these nominee arrangements. The focus is on ensuring that land ownership remains within the rights of Thai citizens, in accordance with the Land Code.
Properties Confiscated
Authorities have identified two specific residential projects that are in violation of the Land Law:
- Baan Fah Luang Project – Located in San Kamphaeng district.
- Rak Chiang Mai ICM Resort – Situated in Ban Waen sub-district, Hang Dong district.
Both projects involved the registration of companies that allowed Thai nationals to hold shares on behalf of Chinese nationals, enabling them to acquire land and property illegally.
Enforcement Measures
Arak Kampanatbovorn, head of the Registration Department of the Chiang Mai Land Office, stated that the government is committed to protecting Thai rights and strictly enforcing laws against foreign ownership of land. The authorities are conducting thorough investigations into all legal entities attempting to establish real estate companies in the area.
The Rak Chiang Mai ICM Resort project has been ordered to sell eight houses and plots of land within 180 days, starting from 4 July 2023. If these properties are not sold at auction within the stipulated time, the governor has the authority to sell the land and collect a 5% fee from the sale price, as per Section 50 of the Land Code.
Impact on Real Estate Transactions
Following the enforcement actions against the Rak Chiang Mai ICM Resort and Baan Fah Luang projects, there has been a significant decrease in the volume of transactions involving nominee companies. This indicates a potential shift in the real estate landscape in Chiang Mai, as the government’s crackdown may deter future foreign investments that do not comply with local laws.
Conclusion
The confiscation of properties linked to Chinese nominees marks a critical step in Chiang Mai’s efforts to regulate foreign ownership in the real estate market. As the local government continues to enforce strict regulations, the future of foreign investment in the region remains uncertain, with a clear emphasis on protecting the rights of Thai citizens.
Sources
- Several Properties in Chiang Mai Are Confiscated After Being Linked To Chinese Nominees, Khaosod English.
