Foreign investors are pouring into the Thai real estate market
In 2023, the Thai real estate market has seen a significant increase in the number of home transactions by foreign buyers. A total of 49.250 units were sold from developer projects. Notably, foreign buyers were responsible for purchasing 5.036 apartment units, representing 10,2% of total sales. These transactions represented a total value of 31,601 billion baht, accounting for 17,9% of the total sales value, marking a new high for the market.
Sopon Pornchokchai, an expert in real estate valuation and research in the ASEAN region, Africa and South America, interprets the activity of foreign buyers as a sign of stability and attractiveness of the Thai real estate market. This also indicates a growing interest among foreigners to live and invest in Thailand. The average price of apartments sold in 2023 was 6,27 million baht per unit, showing that foreign buyers prefer more expensive units.
Bangkok and surrounding areas were particularly popular with foreign buyers, with a strong preference for units priced between 10 and 20 million baht. This price range represented 28,2% of units sold and 40,7% of total sales value. According to Sopon, the Central Business District areas attracted the most interest from foreign investors.
Interest in foreign purchases of apartments in Thailand has evolved following the COVID-19 pandemic. Although the market slowed during the outbreak, it recovered significantly and subsequently grew strongly, demonstrating foreign investors' renewed confidence in the Thai real estate market.
Sopon suggests that encouraging property purchases by foreigners could be a strategy to boost Thailand's economy. He advises the government to designate specific areas where foreign purchases are allowed, to reduce security concerns and potential conflicts between Thai citizens and foreign property owners.
He further stressed that the government should consider new policies and approaches to regulate and promote the purchase of real estate by foreigners in Thailand. This would not only grow the market sustainably, but also benefit the Thai economy, while at the same time avoiding the potential problems arising from such liberalization.
It's a shame that Thailand is so almost hostile towards retirees with money who would like to stay in Thailand a little longer.
See what you have to do to get a visa to stay a little longer.
They ask for a declaration of good conduct, even if you have good health insurance, they still require Covid 19 insurance, which is quite expensive for a retiree.
And then retirees who have permanently settled in Thailand with their Thai wife, an enormous paper mill every year and checking at home whether you are still married to your Thai wife.
pity.
Gr. Arno
You describe a Non OA visa. I am a retiree and have been living in Thailand for many years based on an initial Non O visa. Very simple. No requirements for medical insurance or good behavior. Also no certificate of health.
In Thailand, it is easy to obtain a so-called extension of stay for a year for this initial 90-day visa. No requirement for medical insurance etc. Only a pension income of 65000 baht per month must be demonstrated. This can be done in various ways. The simplest is a so-called income statement/visa support letter from the NL embassy in Bangkok.
Ergo, Non OA is not the only option for longer stays.
Search this website for more information about Non O retirement
That investment by foreigners is much larger than stated by the Thai authority. The article is about condos, but a large number of homes on Thai land are also paid for by expats/retirees every year. But because farang is not allowed to own land, he/she signs a statement before the Land Office official that the money with which his wife pays for the purchase does not come from him. This settles any claim on Thai soil in the event of a divorce or unexpected premature death. On sight. In 2024, these types of practices can no longer be justified, and should the Thai government (quote:) “consider new policies and approaches to regulate and promote the purchase of real estate by foreigners in Thailand”, then the administrative procedure should be the same should be scrutinized. The purchase of land and home is now in the name of a Thai, while it is actually made possible for 50 to 100% by the farang.
Dear Marcel, what a shame that you are once again spreading such an incorrect cowboy story.
A foreigner can simply purchase a house and have it registered. The land can be leased in his name for 30 years.
Indeed, the fact that we cannot register a plot of land is the most illogical thing Thailand can produce. They can introduce all kinds of restrictions, but not in the name of a foreigner is completely incomprehensible. Are they afraid we'll take it home or what's behind this? A limitation in surface area would still be understandable. If the farang owns a house on a piece of land that does not belong to him and the disagreements with the landowner come to a climax, the farang loses the short straw and the stressful situation is born. This law only creates discord.
In the discussion, 2 things are placed next to each other, which causes confusion: farang is not allowed to buy land. Hence the financial-administrative construction via the wife.
You are allowed to lease land. But leasing is not a purchase that acquires ownership. Lease is therefore not a mortgage in order to acquire ownership of land afterwards.
Lease is also not a hire purchase, whereby ownership of the rented property is transferred after payment of the very last installment.
Leasing is simply renting. For a period of a maximum of 30 years/360 months, rent is paid for a piece of land, in return for a right of use to do what the lease is intended for with that land. So you are not allowed to grow sugar cane if it is intended for housing. And not the other way around.
Purchasing land to own is therefore not a lease, and leasing absolutely does not mean ownership. After paying 30 euros you have to leave and the house will be demolished. Unless: a new lease can be. Unlike with a purchase and/or mortgage, you are left empty-handed.
In any case: paying land under the house through a spouse or paying rent for that land for 30 years - you pay for something that you never own yourself. Don't have any illusions.
René, the fact that a farang cannot acquire ownership of land could have to do with protection against the sale of available building land and against price gouging. If that is the motive, then I completely agree with this country, although it does not really help because of the possibilities that the law offers (usufruct, right of superficies) and then there are also the Thai intermediaries who lend themselves to fake constructions.
Anyone who wants to build or buy a house on someone else's land must have the relationship properly recorded. Yesterday I read a contribution in German about the difference between long-term rent and usufruct in Thailand: https://shorturl.at/jlu79
It's a pity that you respond with little legal knowledge regarding the purchase and ownership of land and houses (not condos/apartments). See: https://www.thailandlawonline.com/thai-real-estate-law/ownership-and-buying-real-estate-in-thailand and in particular point 5.
How presumptuous, everyone knows that as a foreigner you cannot purchase Thai land, for example you cannot inherit it from your Dutch children. What Joep says is well and clearly explained. However you look at the holder's rights, lease, rent, lease or whatever, that is only temporarily owning something (land) without being the owner of it. So much for the legal part. In addition, you can be the owner of your house, but you can't easily load it onto the back of your pick-up when you want or have to leave.
It is presumptuous that some people still claim that land purchase is possible for farang. @Herman V says that, for example, and gives the lease option as proof. But leasing is not a purchase. He himself turns it into a cowboy story, while @Marcel points out the 'Thai Wife' option, and thus referring to the article indicates that foreign investments are greater than just in the real estate sector of condos. It is also presumptuous that many people respond without mastering the art of reading. Apparently there's nothing else to do. In any case: the Thai law on farang talks about 'possession' (possession) and not about 'ownership' (property) and mentions the numerous 'restrictions' in this regard. @Joep is right to point out that when the lease ends, the lease holder is left empty-handed. So owning comes to an end. The fact that while you are in possession of the land, it is available for a number of purposes and the feeling that you can live there freely and happily does not alter the fact that you do not own the land. A Company also does not create property. This construction is also only intended as an option for ownership. https://www.siam-legal.com/realestate/thailand-property-foreigner.php en https://www.samuiforsale.com/land-purchase.html?category_id=1
Investing in new real estate in Thailand: DON'T. You have no security whatsoever in the opaque market that is completely manipulated by politicians and their “friends”.
Paid for 2019 condos in 2, 1 in Chiang Mai and 1 in Krabi with New Concept. In 2022, DCI, the anti-fraud agency or ministry, seized all apartments and bank accounts. Also units that were already registered.
An obviously unwritten demand from them to release the case within 3 months was 10% of the 2 billion Baht as tea money. The project developer's lawyer keeps claiming that the tent will be taken over at a 50% buyout. DCI does not respond to emails, despite the fact that their last publication of June 2023 states, also in English, that victims can report and that they will respond quickly.
In any case, I have lost my pension funds, 6 million Baht. This is Thailand. Never buy into the hole because then it is better to throw your money in yourself rather than have it go to the corrupt gang.
tourism destroys more than you like. Where should the Thais live now that their native lands are being confiscated by farang, because they bring in so much money? Who does that money go to? To foreign wealthy people who have invested so much and also want to cash in on that investment. And that money has the ordinary Thais, who, together with even cheaper 'guest' workers, have built the houses for little money in which they cannot live themselves. Too expensive. Enjoy it and don't forget to sell on time otherwise you will miss a nice bonus.
Farang? Mainly Asian investors. And Russians in places like Phuket.
Totally agree. See what's happening in Bali. Westerners really take over life in the tourist places there. Often with Western arrogance. Look what is happening in the center of Amsterdam, where the prices are no longer affordable for residents with an average income.
Living in Thailand is wonderful, but I completely understand that Thailand wants to protect Thais against Western takeovers.
It is mainly Asian investors who are taking over. And Russians in places like Phuket.
Protecting the Thais against takeovers?
Please explain to me why the area where I live among the 'Thai' is swarming with Chinese immigrants. You can't tell me that all those Chinese families here don't have any property.
Many have a partner or child with Thai nationality.
Also in our moo lane.
That's right Roger,
There are indeed many Chinese families living in our area who have few or no Thai relatives.
Many of them have a very neat home, I don't know if this is their property, but I doubt if they would rent all those homes.
I know two of them personally, both of whom hold a high-ranking position in a production company and speak fairly good English. At least they claim that they own their own home. I don't know the details (do they own the land?).
I have the impression that there are loopholes regarding whether certain groups of foreigners can or may not purchase building plots.
Yes, you cannot buy land and with condos you are dependent on the residents who help pay for maintenance
There is such an oversupply of rental properties that investing in them is a bad idea anyway.
I paid THB 15000 per month for a new studio in Hua Hin five years ago.
The same studio is now for rent at THB 10000.
And it is added that it is a delight!
Sooner or later this bubble will burst.
Regards,
Ron
What I miss here is that you can simply buy a house together with your Thai wife without any strange constructions.
If you are married to a Thai person, the home belongs to both and the home can never be sold without the consent of both.
In the event of a divorce without agreements, each person receives half of the value upon sale.
However, with agreements, the man can demand the entire value of the house.
When the Thai woman dies, half goes to the heirs.
So no problem at all