Thai Condominium Market - Developers Need to Consider the Law
There exists some confusion over the regulation for foreign purchase inside Thailand. Most developers along with government officials agree that will foreigners can buy up to 49% of the units in any one condominium building. However , legal issues used to limit foreign control at 40%, and this ended up being increased to 49% over a 5 year basis. This specific 5 year period has expired and so legally often the limit should revert to 40%. However , most people are continue to working on the 49% principle, meaning that many new condominium sections perhaps are being sold to outsiders illegally. For the rest of this article, why don't assume that the law is actually 49% (as is the common belief). I recently visited a very good, luxury condominium. It is a reduced rise 8 story making, which is the maximum height the law allows for given the actual width of the access highway into the premises. Each product in this deluxe new condo project has 4 bed rooms and measures 300 sq m. All I can point out is that it is a stunning creating, very classy. However , in addition, it commands a very high price tag, together with each unit being sold from over 40, 000, 000 Baht. The developer got this concept of a chung cư bình dương, where all owners are usually affluent and wealthy men and women. However , the developer has already hit a problem. They have marketed 49%, the full foreign particular, to foreign buyers, nevertheless they have sold only about 10% in the remaining 51% to Thai Nationals, some of which were affiliates of the developer. The problem the particular developer faces now is they cannot find enough prosperous Thai nationals to buy the remainder units, meaning that they are discontented with them. As a developer, this kind of represents a very large portion of the profits of this improvement. Thai law prohibits non-Thai nationals from owning terrain, so condominiums are the evident alternative for foreign buyers. However , if you are a Thai Countrywide, then you could buy a very large residence for 40, 000, 000 Baht, so why would you devote that much on a 300 sq m. condominium unit? For this reason, there are a number of new condominium properties targeting the high end industry, that have sold-out the foreign part and now are struggling to promote large and expensive models to Thais.