Deputy Finance Minister Julapun Amornvivat has defended a new proposal aimed at allowing foreigners to purchase real estate in Thailand, arguing that it will stimulate the local economy and attract skilled foreign residents. Critics have raised concerns about the potential impact on national sovereignty and local property prices.
Key Takeaways
- The proposal aims to increase foreign ownership quotas in condominiums and extend land lease periods.
- Julapun insists the measures will not compromise Thailand’s territorial integrity.
- The government is assessing the economic impact of these changes.
Proposal Details
The proposal suggests increasing the foreign ownership quota in condominiums from the current 49% to 75%, while maintaining their voting rights at 49%. Additionally, it recommends extending land lease periods for foreigners to a single lease of 99 years, compared to the current maximum of 50 years with renewals up to 99 years.
Economic Impact
Julapun emphasized that the primary issue affecting local property prices is not the prices themselves but the difficulty people face in accessing loans from financial institutions. The government has tasked relevant agencies with evaluating the economic implications of the proposal.
Support from Real Estate Executives
Local real estate executives have expressed support for the proposal, believing it will attract more foreign investment. Issara Boonyoung, honorary president of the Housing Business Association, noted that similar measures were implemented after the 1997 financial crisis to stimulate the market. He suggested that new foreign ownership rules be applied selectively in areas popular with foreigners, such as Bangkok, Phuket, and Pattaya.
Government’s Broader Goals
The proposal is part of the government’s broader strategy to stimulate investment, increase employment, and establish Thailand as a global hub for foreign tourists and skilled residents. By making it easier for foreigners to invest in property, the government hopes to create a more attractive environment for international talent and capital.
Conclusion
While the proposal has its critics, Julapun remains steadfast in his belief that these measures will benefit Thailand’s economy without compromising its sovereignty. The government continues to review the potential impacts and gather feedback from various stakeholders.
Sources
- Bangkok Post – Julapun defends new property proposals, Bangkok Post.
