Real Estate & Legal News in Thailand from Propertyshowrooms.com

Thai property experts press for changes to foreign home ownership policy

Wed, 15 Jun 2011 00:00:00 GMT

Officials in Thailand are lobbying the government to review its policy towards foreign home ownership.

The Joint Foreign Chambers of Commerce in Thailand (JFCCT) and real estate consultants are keen for less restrictions to be placed on the sector.

They warn that if changes are not implemented, many buyers will simply go elsewhere.

JFCCT is lobbying for the introduction of a 60 year registered lease term, double the current 30 years.

"Properly handled, the contribution to the wider Thai economy could be significant without any material risk to issues of sovereignty or adversely affecting social or economic conditions," the company says in a new report.

The firm draws attention to the less-restricted markets of other countries in the region, such as Hong Kong or Singapore, where the sector is booming.

"In response to the global crisis, Singapore has liberalised its foreign ownership laws and launched for the first time landed villas at Sentosa which were targeted at new overseas investors and have been a resounding success," the report added.

Thai restrictions having 'no negative effect' on property market

Wed, 6 Apr 2011 00:00:00 GMT

Limitations on foreign ownership in Thailand are preventing overseas buyers from entering the market, it has been claimed.

Bangkok, in particular, did not witness any notable deals and income through real estate during the fourth quarter of 2010, a new report from CB Richard Ellis (CBRE) has claimed.

"Although there have been concerns regarding the influx of foreign capital into Thailand, the various restrictions on foreign investment ensured the real estate investment market remained largely dominated by domestic players," the consultancy confirmed.

Indeed, CBRE explained that the market was completely dominated by local buyers following a decision to raise the policy interest rate three times in the second half of 2010.

The Bank of Thailand also announced that it would be decreasing LTV's for condominiums to 90 per cent and LTV's for houses to 95 per cent.

Despite this, CBRE concluded that the moves have not had any major negative impacts on the property market, with Thailand's major property firms even announcing dozens of new building projects for 2011.

Controversial land plan reborn

Mon, 19 Jan 2009 00:00:00 GMT

Fifteen years ago, then the Democrat-led government was forced to dissolve the House after it was humiliated by the Opposition in the parliament over abuses of power in the sor por kor 4-01 land scheme. Today, it wants to resurrect the same programme...

Somsak: Middle East hunting for Thai land

Fri, 21 Nov 2008 00:00:00 GMT

(BangkokPost.com) - The minister of agriculture is hoping to persuade the Cabinet to issue a law preventing excessive land grabbing by Middle Eastern groups...

Thailand 'looking at relaxing foreign ownership rules'

Thu, 2 Oct 2008 00:00:00 GMT

Thailand is considering relaxing the rules on foreign ownership of property to make it easier for non-Thais to invest there.

Global Property Guide figures supplied to the Seoul Times have revealed that while prices increased by 5.6 per cent in the year to the end of the second quarter of 2008, this represents a real terms drop of 4.18 per cent as the house price rise is lower than overall inflation.

The paper said that the Thai government is considering changing the ownership rules in response.

Another factor that could make it easier for investors to buy in Thailand is the price itself.

Udorn Olsson, managing director of the Para Development company, has said that the effect of the credit crunch will be to hit the interests of westerners, who make up the majority of high-end Thai property buyers.

As a result, he stated, developers may need to accept lower profit margins in order to adjust to the realities of the new business environment, the Bangkok Post reports.

Thailand attracting an "array" of investors

Thu, 23 Aug 2007 00:00:00 GMT

Thailand is proving popular with a wide variety of buyers looking for different types of property and investment opportunities, according to one expert.

Jason Killingback, sales adviser at David Stanley Redfern, said that although Thai buying laws can be "quite complicated", steps are being taken to make things easier for investors.

While some of the most popular areas to invest in include Bangkok, Koh Samui and Phuket, Mr Killingback suggested that the market is attracting people with different investment strategies and requirements.

"We get people looking for investment, people looking for a holiday home, people looking to use [a property] for a couple of months' work; it's a whole mixture for that sort of market," he remarked.

Figures published by the Tourism Authority of Thailand recently showed that more than 850,000 tourists from the UK visited the country between January and December last year.

Investors 'cautious' over Thai property market

Wed, 22 Aug 2007 00:00:00 GMT

Many people considering purchasing property in Thailand remain cautious, despite the fact that the risk to investment is "not large", according to one expert.

Commenting on the Thai market, Marsha Lu, head of the legal, diligence and compliance department at Property Frontiers, said that media reports on the recent military coup has prompted some investors to be wary of buying property there.

"No market is a bad market … It's just what the expectations of investors are," Ms Lu argued.

To invest in freehold property, foreign buyers currently have to go through a company scheme, Ms Lu stated, suggesting that this can raises concerns over how secure an investment is likely to be.

Earlier in the month, the Bank of Thailand said that conditions within the US housing market were unlikely to have a negative impact upon the Thai economy, Thomson Financial reports.

Suchada Kirakul, the bank's assistant governor, said the property market had not "over-expanded", so it was "certain" the problems faced by the US housing market would not happen in Thailand.

Investors 'remain confident' in Thailand

Wed, 16 May 2007 00:00:00 GMT

Foreign investors have remained focussed on Thailand despite political and economic uncertainties, a leading real estate services firm has said.

According to Jones Lange LaSalle, although internal changes in Thailand ? such as revised investment laws ? had shaken the confidence of outsiders, investors are confident that conditions will improve.

Longlom Bunnag, the company's chairman, said that investors believe Thailand's troubles are temporary and are hoping that the economic conditions will improve around the time of the general election in December, reports the Thai News Agency.

"Although the property market in Bangkok is likely to slow down this year, the market fundamental remains strong," said Mr Bunnag.

"A slow demand in the market stemmed from a lack of confidence among consumers and investors rather than lower purchasing power."

He went on to say that high investment returns in Bangkok would continue to attract foreign and local investors.

An Israeli property firm recently signed a letter of intent to buy a high-rise development in Bangkok ? a sign that investors have not lost hope in Thailand, according to Thailand Real Estate & Property Guide.