Thailand’s real estate sector eyes foreign investment boost

With an eye on boosting the economy, real estate developers and consultants are urging Thailand‘s new government to implement policies that promote foreign investment. They believe such measures will stimulate a more positive environment for overseas buyers in the property market, suggesting promotional efforts to increase awareness among foreign investors.

Artitaya Kasemlawan, head of residential sales projects at CBRE Thailand, said…

“The attractiveness of Thailand as a destination for foreign buyers is unquestionable.”

The 42 year old says she is confident that if there is “confidence in both the global economy and foreign buyers’ economies, along with the presence of attractive measures,” purchasers are more likely to invest in Thai properties.

Artitaya’s assertion comes in light of numerous newly-launched luxury condominiums in Bangkok’s central business district offering leasehold tenures of up to 58-59 years. In her view, extending the leasehold period for low-rise houses to 60 years could potentially spike interest among foreign investors, many of whom make such purchases for personal use.

As per the data provided by the Real Estate Information Center, the condo unit transfers to foreigners in the first quarter of the year 2023 saw a significant jump of 79% year-on-year, resulting in 3,775 units worth 17.1 billion baht (US$ 485,133,840). This surge became more pronounced as condo transfers to foreign buyers in Chon Buri surpassed those in Bangkok, reported Bangkok Post.

Proudputh Liptapanlop, the executive director of developer Proud Real Estate Plc, says she has observed a notable rise in property purchases by Russian buyers in the first quarter of 2023, especially for the company’s luxury condo project in Phuket. She expects that this trend will continue for the rest of the year, further aided by the possible return of Chinese buyers.

Proudputh, pointing out that permission for foreign property ownership is a matter of downstream consequence, said…

“Promoting foreign investment by way of providing tax incentives and ensuring safety and liveability should be the new government’s focus.”

Echoing Proudputh’s sentiments, Thongchai Busrapan, co-chief executive of Noble Development Plc, expressed satisfaction with the company’s sales to foreign buyers in the first quarter, pegged at 1.5 billion baht (US$ 42,553,191) – the highest in the firm’s history.

He anticipates setting a new record for foreign sales this year if sales from Chinese buyers, reportedly contributing 25% of the firm’s total sales, bounce back in the following months.