There is some confusion around the regulation for overseas buy in Thailand. Most builders and federal government officials agree that foreigners can invest in up to forty nine% of the units in any 1 individual condominium building. Nevertheless, the regulation utilized to restrict international ownership at 40%, and this was improved to forty nine% on a 5 12 months basis. This 5 yr period has now expired and so lawfully the limit need to revert back to 40%. Even so, most people today are even now working on the forty nine% rule, this means that quite a few new condominium units maybe are remaining bought to foreigners illegally.

For the rest of this write-up, let’s presume that the legislation is really 49% (as is the common belief). I not too long ago frequented a really pleasant, luxurious condominium in the Sukhumvit area. It is a reduced rise 8 tale building, which is the utmost top that the law lets for offered the width of the entry street into the premises. Every single device in this deluxe new condominium project has 4 bedrooms and steps 300 sq.m. All I can say is that it is a spectacular creating, really stylish. Nevertheless, The Landmark Condo commands a very superior cost tag, with just about every device currently being offered at around forty,000,000 Baht.

The developer had this strategy of a deluxe condominium, where by all proprietors are affluent and rich people. On the other hand, the developer has now hit a issue. They have bought forty nine%, the total international quota, to overseas buyers, but they have sold only about 10% of the remaining fifty one% to Thai Nationals, some of which were being associates of the developer. The challenge the developer faces now is that they are unable to locate more than enough wealthy Thai nationals to get the remaining units, meaning that they are caught with them. As a developer, this represents a incredibly significant proportion of the income of this development.

Thai regulation prohibits non-Thai nationals from owning land, so condominiums are the obvious option for overseas buyers. Having said that, if you are a Thai Countrywide, then you could obtain a incredibly huge property for 40,000,000 Baht, so why would you invest that a great deal on a three hundred sq.m. condominium device?

Mainly because of this, there are a range of new condominium structures in Bangkok focusing on the substantial conclusion sector, that have bought-out the international quota and now are battling to sell massive and pricey models to Thais.

There aren’t that a lot of Thais in Bangkok that could or would decide on to buy a 40,000,000 + Baht condominium unit. If you did some research, you would find out that new condominium projects supplying smaller studio, one and two bed room models are marketing like very hot cakes and most of the purchasers are Thai Nationals.

This is a considered, maybe a developer who preferred to build a luxury Quality A condominium with only substantial and costly models should think about making an additional condominium in an adjacent land plot, with tiny models, and sign-up the two locations as 1 condominium (like Tower one and Tower 2, but branded as two individual entities). That way, they could entice additional Thais to order smaller sized units and the luxury models sell to wealthy overseas buyers. Possibly they could different both of those buildings with a wall and have different access factors much too, just a assumed.

Or most likely the Government could reconsider the 49% foreign possession limit. The legislation has in the previous authorized up to a hundred% foreign possession of units in any one condominium developing, but this was back again when the financial system was crashing and further stimulation in the economic climate was necessary.

So, why forty nine% now? Properly, technically as the proprietor of a condominium unit, you also very own part of the voting legal rights of the setting up and portion of the land. So, in theory if there was much more than 50% overseas possession in a condominium, there would be additional than 50% possession of the land. So what does this signify, that the overseas owners could collaborate together, outvote the Thai homeowners and offer the Land? Perfectly no, the Condominium Act 2522 necessitates unanimous voting of all a hundred% of co-proprietors to demolish a condominium building. It also calls for seventy five% co-owner approval to promote prevalent space land of the condominium. So the true question is, need to the government rethink this forty nine% rule, right after all it is actually hurting some developers.