PATTAYA, Thailand – In the context of long-term economic recovery and stimulus, the government has placed significant importance on using the real estate sector as a primary mechanism to attract investment capital and high-potential personnel from around the world. This initiative originated from a proposal by the Ministry of Finance in mid-2024. The Prime Minister at the time subsequently instructed the Ministry of Interior, through the Department of Lands, to serve as the lead agency in studying the feasibility of revising relevant laws governing housing ownership by foreigners. The aim is to modernise the legal framework, align it with regional competitive conditions, and build long-term confidence among foreign buyers.
The measures under study involve amendments to two main laws. The first concerns extending land lease terms through the sapp-ing-sith system, with proposed amendments to the Sapp-ing-sith Act B.E. 2562 (พระราชบัญญัติทรัพย์อิงสิทธิ พ.ศ. 2562) to extend the duration of rights from the current maximum of thirty years to a maximum of ninety-nine years. This measure aims to enable foreigners to plan their residential and investment strategies comprehensively over their lifetimes, without concerns about the restrictions associated with traditional short-term lease contracts. Strengthening this legal framework would increase economic value and provide stability for rights holders.
The second concerns increasing foreign ownership quotas for condominiums, with proposed amendments to the Condominium Act B.E. 2525 to raise the foreign ownership ceiling in each project from no more than forty-nine percent to no more than seventy-five percent. At the same time, the government continues to prioritise maintaining balance and order by introducing conditions on voting rights within condominium juristic persons. Foreign voting rights would remain capped at no more than forty-nine percent, while the additional twenty-six percent ownership would carry no voting rights. This is intended to prevent foreign dominance over condominium management and preserve the rights of Thai co-owners.
Regarding the current status and progress, the Ministry of Interior, through the Department of Lands, is gathering public feedback and conducting in-depth studies. It has been tasked with drafting proposals and analysing their advantages and disadvantages through a comprehensive Regulatory Impact Assessment encompassing legal, social, and economic dimensions.
The proposal has sparked intense debate and opposing viewpoints. Supporters, including eighteen real estate business associations, welcome the initiative as an opportunity to attract long-term investment capital and bring ownership structures into the formal legal framework rather than relying on nominee arrangements. Opponents, including academics and civil society organisations, express deep concerns about potential price increases affecting local homebuyers, as well as implications for land distribution and national security.
These measures have not yet taken effect as law and have not received final approval from the Cabinet or Parliament. They remain policy proposals subject to feasibility studies and public hearings, requiring further consultation and refinement before a final decision is made on whether to proceed, adjust the conditions, or shelve the initiative altogether.
