Plans to Boost Foreign Property Investments by CESA

Plans to Boost Foreign Property Investments by CESA

The Thai property market has been in need of significant strategies and reformations to attract foreign buyers. The Center for Economic Situation Administration (CESA) has considered a stimulus package to encourage a positive change, focusing on aid measures and project collaboration that are aimed at boosting condo sales from foreign buyers. 
Amidst concrete decision-making processes to push forth improvements, several recommended actions have been suggested that could have significant impacts to the real estate industry. The first point looks at reopening tourist locations, such as Phuket and Samui, for high-potential visitors, such as from China. However, input and consent from locals should be considered as well, as this idea poses risks on allowing tourists to travel around designated places.

Another idea, stated by Colliers International Thailand, mentions that the government could extend to leasehold period for property ownership that is currently set at 30 years. The proposition to extend to 50 years could help entice foreign buyers. In addition, property developers in central areas are faced with capped out foreign quota for ownership of condominiums. Many locations, such as Asoke, Phrom Phong, Thong Lor and Ekkamai BTS stations are attractive residence areas, but the foreign quota is one of the obstacles to foreign property investments. 

In a co-project with Thailand Elite Card, an exclusive residency program provider for foreign guests operated by Thailand Privilege Card (TPC) company, both parties are looking for ways to increase their 10,900-member count in their upcoming plan. 

So, what does this mean if these ideas are implemented? Stimulus packages are nothing new to the property sector. For example, during November 2019, the Thai government had introduced a stimulus package to increase demand by making housing costs more attainable. The package included a 50,000 THB cash-pack to support home buyers’ down-payments, following other terms & conditions. With positive results of this package, many banks (such as Krungthai Bank) gave their full support, while others took the extra strep to develop their own down-payment systems. 

Looking at the current stimulus package under consideration by CESA, it is still unsure the exact impacts proposed by these changes. However, Chanon Ruangkritya, president and chief executive of Ananda Development, believes the key point is the government should start doing something, which would help set a path for other regions to follow. As to what the finalized plan, implemented steps and the exact outcome would be, remains to be monitored closely.