There is some complication over the legislation for foreign purchase in Thailand. Most designers and federal government authorities concur that immigrants could acquire up to 49% of the units in any kind of one certain condominium structure. Nevertheless, the regulation utilized to limit international possession at 40%, as well as this was boosted to 49% on a 5 year basis. This 5 year duration has currently ended and so lawfully the limitation ought to change back to 40%. Nevertheless, the majority of people are still working on the 49% regulation, indicating that many brand-new condominium units probably are being offered to foreigners unlawfully.
For the rest of this write-up, let’s assume that the legislation is really 49% as is the usual belief. I lately went to a really nice, deluxe condominium in the Sukhumvit area. It is a low increase 8 story structure, which is the maximum elevation that the law enables provided the size of the gain access to road right into the facilities. Each system in this deluxe new Riverfront Residences Hougang condominium task has 4 rooms as well as measures 300 sq. m. All I can claim is that it is a magnificent building, extremely stylish. Nevertheless, it additionally commands a really high cost, with each device being cost over 40,000,000 baht.
The designer had this concept of a luxurious condominium, where all proprietors are upscale and rich people. However, the designer has currently struck an issue. They have actually offered 49%, the complete international allocation, to international purchasers; however they have marketed concerning 10% of the remaining 51% to Thai nationals, several of which were affiliates of the programmer. The trouble the developer encounters now is that they cannot discover sufficient affluent Thai nationals to purchase the staying units, indicating that they are stuck with them. As a designer, this represents a large percentage of the earnings of this advancement.
Thai law restricts non-Thai nationals from owning land, so condos are the apparent alternative for foreign investors. However, if you are a Thai national, then you could buy a large home for 40,000,000 baht, so why would you spend that much on a 300 sq. m. Condominium system.
Due to this, there are a variety of new condominium buildings in Bangkok targeting the high end market, that have sold-out the foreign allocation and currently are battling to sell huge as well as costly units to Thais.