Amidst growing demand from foreign buyers, calls for an increase in foreign ownership quotas for condominiums have surfaced, particularly in key tourist destinations like Phuket and Pattaya. Brenton Mauriello, CEO of Raimon Land, suggests raising the maximum foreign ownership quota from 49% to 60% to spur economic growth without adverse effects on the country.
Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), supports this notion, noting that certain areas heavily reliant on foreign demand may benefit from higher quotas to stimulate economic activity. In locations where domestic buyers are scarce, such adjustments could bolster the condominium market.
Projects like Laguna Lakelands in Phuket have already taken steps to address this issue by offering leasehold contracts for reserved units at lower prices, primarily targeting foreign buyers. According to the REIC, the number of condo transfers by foreigners surged in 2023, reaching 14,449 units worth 73.1 billion baht, marking a significant increase compared to pre-pandemic levels.
Key factors driving this surge include the reopening in 2021, the introduction of free visas for Chinese and Kazakhs, and ongoing geopolitical conflicts. Chinese buyers accounted for the largest share of condo transfers, followed by Russians, Americans, and Myanmar nationals.
The majority of transactions fell within the price range of 3 million baht and below, with condo sizes ranging between 31-60 square meters being the most popular. Chon Buri witnessed the highest number of condo transfers by foreigners, followed closely by Bangkok, collectively representing a significant portion of the nationwide total.
The proportion of foreigners involved in condo transfers increased in 2023 compared to previous years, signaling a resurgence in foreign demand. Mr. Vichai remains optimistic about continued momentum in the condo market this year, driven by sustained foreign interest.
