According to a government official, regulations may get put in place to lessen the impact on Thai citizens.
PUBLISHED: 6 Jul 2024 at 17: 28
Concerns about the potential negative effects of the government’s plan to increase the foreign ownership limit for condominiums to 75 % and extend area leasehold terms to 99 years have been minimized by the state.
According to government official Chai Wacharonke, who wrote in a blog on his Twitter page, the government had often enact more regulations to address what is now feared to be having a negative impact on Thais.
According to the government’s plan, the foreign ownership cap in flats would be raised from 49 % of usable space to 75 %. Comparing the current terms of 30 and 50 years, the highest property lease term for foreigners did become 99 years. Land leases can be renewed at any time, as long as both the landlord and the owner have a plan.
The government was also taking into account the viewpoints of all parties, according to Mr. Chai, while anticipating significant economic benefits from the plan.
He cited four common issues that have prompted debate in the press since the proposal’s debut next month.
First, he said, some people worry that the changes will cause house prices to rise, making many Thais unsustainable.
Next, some foreigners perhaps obtain condos with the purpose of offering them for short-term rentals to tourists.
Third, immigrants with limited resources might be able to secure leasehold agreements for numerous joined plots of land in an area to run a company, giving them a competitive advantage over Thai business owners who only have the money to spend.
Third, when the percentage of foreign condos owned by foreigners exceeds that of their Thai rivals, the foreigners may find a way to circumvent the laws limiting their ability to control project control and exercise control, he said.
The truth is that the government can always take into account issuing a new rule to handle all of these feared scenarios, if needed, to ensure fairness and protect the interests of Thai citizens, according to Mr. Chai.
For instance, he said, even if a 75 % foreign quota is introduced, there could be a condition that limits voting rights by foreigners on matters related to the condo’s juristic person operation at 49 %, he said.
Last year, Deputy Interior Minister Chada Thaised received inquiries from the criticism in the House regarding the plan. He claimed that the cabinet had just yet approved the proposal for further research and not yet put into practice.