The Thai government recently proposed major revisions to its real estate laws to attract more foreign investment and boost economic growth. The most notable change is the increase in the quota for foreigners purchasing apartments in areas such as Bangkok's CBD, Phuket, and Pattaya from the current 49% to 75%, while also extending the lease term from 30 years to 99 years.

These proposals were detailed in a letter to the Thai Cabinet on June 20, urging the Ministry of Interior to study and discuss these amendment plans promptly. This move is seen as addressing current challenges in the real estate market, especially during the economic recovery phase, by enhancing attractiveness to foreign investments and providing developers with longer-term operational stability.

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Under the new proposals, areas like Bangkok's CBD, Phuket, and Pattaya will serve as pilot areas allowing foreigners to purchase more apartment units under specific conditions. These conditions include total project areas not exceeding 5 Rai and strict constraints on voting rights for foreign legal entities to ensure Thai citizens maintain majority decision-making power in project decisions.

However, these proposals are not without controversy. Prasert Taedulyasatit, Chairman of the Thai Condominium Association, pointed out that such legal amendments are not new; similar adjustments were made to related laws during the 1997 economic crisis. He believes that expanding the quota for foreigners to purchase apartments to 75% will help attract more international investments, especially against the backdrop of recovering demand in the Thai real estate market.

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For the Thai real estate market, these revisions could signify significant shifts. Policies once viewed as restrictive will now be more open, potentially attracting more foreign capital into the market and accelerating development projects. However, some remain cautious about these changes, concerned that over-reliance on foreign investment could have adverse effects on the local market and property prices.

Prime Minister Prayut Chan-o-cha expressed support for these reforms, emphasizing their positive impact on the Thai economy. He noted that extending lease terms to 99 years and increasing the proportion of apartments available for foreign purchase aim to enhance market competitiveness, encourage more real estate development projects, and stimulate economic growth and job opportunities.