Thailand Changes Strategy to Attract Chinese Investors, Extends 99-year Lease & 75% of Condo Ownership to Foreigners

• webmaster@construction-property.com
• 18 August 2024
• Uncategorized
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Chinese investors are rapidly increasing their presence in Thailand’s property market, with over 100 billion baht invested in key economic cities over the past 15 years, according to Property DNA and updated by The Star on 06 August 2024.

This trend is expected to accelerate further as the Thai government considers extending the leasehold period for foreigners from 50 to 99 years and raising the foreign ownership limit in condominiums from 49% to 75% of usable space, potentially transforming the dynamics of the market.

Property DNA’s Managing Director, Surachet Kongcheep, highlighted that Chinese-funded companies, either established under Thai law or through joint ventures with Thai partners, have been strategically acquiring condominiums and houses in major cities like Bangkok, Pattaya, and Phuket. These properties are primarily aimed at wealthy Thais and foreigners seeking luxury residences. The anticipated policy changes could trigger an influx of Chinese investors looking to capitalise on the expected rise in demand from foreign buyers.

Surachet further noted that while Thai property developers view the proposed regulations as a catalyst for expanding sales to foreign buyers, there is concern that companies operated by Thai nominees or joint ventures could dominate the market, potentially absorbing a significant portion of the available supply.

In the first half of 2024, Chinese investment in Thailand surged to approximately US$10.84 billion, securing the country’s position as the third-largest foreign investor. This represents a 9.48% share of total foreign direct investment (FDI), trailing only Japan and Singapore with respective investments of US$28.19 billion and US$13.39 billion.

Thailand’s automotive industry continued to be a magnet for Chinese capital, attracting US$550 million in investments. The tyre and inner tube sector also saw substantial growth with US$478 million in Chinese investment. Additionally, the real estate, steel, and energy sectors collectively garnered over US$4.1 billion in Chinese funding.

These developments reflect the growing significance of Chinese capital in shaping the future of Thailand’s real estate market, with the potential for even greater influence should the proposed regulatory changes come into effect.

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