Deputy Prime Minister and Finance minister Pichai Chunhavajira confirms the government is moving forward with a project to allow foreigners to lease condominiums for 99 years, aiming to stimulate the real estate sector, which has over 200,000 unsold units.
Pichai on Wedensday gave a keynote speech and special discussion on the topic “Developing Sustainable Real Estate.”
He acknowledged that the real estate business is currently facing issues with over 200,000 unsold condominium units. People are unable to purchase due to increasing household debt, a matter the Ministry of Finance and the government must urgently address to prevent further impact on Thailand’s overall economy.
However, the Ministry of Finance sees that allowing foreigners to lease condominiums for 99 years is a suitable policy to reduce the backlog of unsold units. Yet, there must be clear zoning criteria determining where foreigners can lease, with each unit valued at more than 30-40 million baht.
Foreign leases would only grant usage rights, while ownership remains with the lessor. This is not considered a measure to “sell the country” as some parties are concerned.
This policy does not require legal amendments but clear guidelines and conditions for leasing.
Additionally, the Ministry of Finance believes that government-owned land could be developed for leasing, focusing on foreign tenants. This proposal is currently under study, and if feasible, could benefit Thailand’s overall economy. (TNA)
