The Center for Economic Situation Administration (CESA) will consider a property stimulus package for foreign buyers as the country looks to provide the real estate market with a much-needed boost. According to the Bangkok Post, both aid measures and a scheme with the Thailand Elite Card will be considered.
Thailand Privilege Card President Somchai Soongswang told the newspaper that the firm is looking at ways it can increase condo investment among Thailand Elite Card holders and prospective clients. A number of real estate agents sell the Thailand Elite Card so there is some synergy that could be cultivated in this regard.
One possible measure mooted is raising leasehold property ownership terms. Currently, leasehold terms run for 30 years with two additional 30-year extensions possible after that. Lengthening this to 50 years could make Thailand more competitive with other countries.
“Many neighboring countries have tried to lure foreign buyers to boost their property sector. To be competitive, Thailand should extend its leasehold period,” Phattarachai Taweewong, Associate Director at Colliers International Thailand, explained to the Bangkok Post. “Most condo projects in several locations in Phuket and Pattaya already have the full foreigner quota. To boost sales from foreign buyers, developers need to offer them a leasehold contract.”
There is also hope the move to extend leasehold terms would benefit certain Bangkok locations where foreign quotas have already been taken up at several projects. Phattarachai singled out Asok-Rama IX, Phrom Phong, Thong Lo and Ekamai as areas where this could help.
Should any property stimulus package for foreign buyers contain improved leasehold property ownership terms, the detached housing market would also benefit. It is unlikely international buyers would be able to buy homes on a freehold basis, but a more favorable lease policy could open up new possibilities.
AP Thailand noted that it is ready to market its detached housing to overseas property buyers should the government implement a policy to promote ownership. The firm is one of many developers in Bangkok that are now focusing on low-rise housing projects where real demand remains steady.