Article: Dr. Sophon Phonchokchai encourages foreigners to buy Thai real estate after making new highs. Condominiums 31,601 million. In total, in 2023, a total of 49,250 condominium units were sold, which are projects in the hands of land development operators. There are 5,036 units purchased by foreigners. Accounting for 10.2%

In the past year 2023, foreigners purchased a total of 5,036 condominium units in Bangkok and surrounding areas (10.2% of the total number of condominium units), totaling 31,601 million baht (17.9% of the total purchase value), considered a new high. Data Center Research and evaluate Thai real estate, Agency for Real Estate Affairs Co., Ltd. (www.area.co.th)

Survey of housing reservations, especially condominium units, by foreigners in Bangkok and surrounding areas each year. and found important information which is useful for government planning and private sector real estate sales.

Overall, in 2023, a total of 49,250 condominium units were sold as projects in the hands of land developers. There were 5,036 units purchased by foreigners. Accounting for 10.2% in terms of sales value. Found that entrepreneurs develop Land can sell condo units for 176,730 million baht, with foreigners at 31,601 million baht, or approximately 17.9%, with an average selling price of approximately 6.275 million baht per unit.

However, the overall price of condominiums sold in 2023 was 3.588 million baht, indicating that foreigners bought condominiums at a price that was approximately 75% higher than Thai people bought them. However, in 2019-2022, the average price that foreigners bought and people also It may not be much different from what Thai people buy, except in 2020 when the COVID-19 epidemic occurred. The price that Thais and foreigners buy is about the same, and that year was the year that foreigners bought the fewest condominium units, at only 3,378 units.

It can be seen that before COVID-19, in 2019, foreigners purchased 15% of the total value of condominiums sold in Bangkok and surrounding areas. But during COVID-19, it was only 3.5% in 2020 and 5.4% in 2021, but when it came to 2022, foreigners returned to buy at 11.1% of the value of condominiums that were traded. And when it comes to the full year of 2023, it has moved up to 17.9%. This shows that foreign condominium purchases have recovered 

It can be noted that condominium products that foreigners purchase The largest group is in the price range of 10-20 million baht, with a share of up to 28.2% in number of units and 40.7% in development value. Condominium products priced less than 3 million baht are not highly sought after by foreigners. This is because moderately priced, relatively cheap apartments in Bangkok have very small apartment sizes, such as only about 22-30 square meters. while the apartments that foreigners are interested in It's not a studio room. But it should have a size of 40-50 square meters or more.

The largest group of condominiums purchased by foreigners, 1,759 units, are in the city center, accounting for 31% of the city center. And if comparing between locations He went to the plane at 34.9%, thus showing that most of the condominiums that foreigners bought were in the city center. Followed by Ratchada-Lat Phrao with foreigners purchasing in second place, followed by On Nut-Suvarnabhumi. and Bangna-Theparak Therefore, if foreigners are to buy real estate, there should be laws specifying the areas in which foreigners can purchase. There is no need to buy everything in general. This is to reduce problems that will arise, such as security problems. causing house prices to increase This may be the reason why foreigners come to buy houses.

It is expected that for the nationwide scope Foreigners will purchase a total of 77,000 condominium units out of 55,000 condominium units sold nationwide in 2023, or 14% bought by foreigners and when combined with housing developments or low-rise residences in the hands of land developers. It is expected that in 2023 there will be approximately 220,000 units of houses and condominiums sold in housing developments across the country, with foreigners purchasing 13,200 units, or 6% of the total, with approximately half of them likely to be buyers from China.

However, in Thailand there are a total of 28,188,470 units of houses. If they are traded just 2.5% per year, that is equal to 704,712 units. This means that apart from selling new houses from the land development company's projects of 220,000 units, the remaining 484,712 units are second-hand houses being bought and sold. which is more than a new house In the second-hand house group, there are probably foreign buyers as well. But probably not more than 3%, which is about 14,541 units. When combined with 13,200 units of new homes bought by foreigners, it would be only 27,741 units that foreigners bought houses in Thailand. Or it can be said that foreigners come to buy houses in Thailand, approximately 3.9% of all housing transactions each year.

Among the 27,741 units purchased by foreigners from this forecast for 2023, it was found that in the first half of 2023, foreigners bought at an average price of 5.824 million baht (only condominiums in Bangkok and surrounding areas). If this figure is taken Used for housing that foreigners buy throughout the country, assuming that in other provinces, especially tourist provinces, foreigners may buy them at a higher price. While in other provinces you may buy at a lower price. Therefore, if this figure is used, the total amount will be 161,564 million baht.

This amount of 141,564 million baht would be transferred as usual. You may receive taxes and transfer fees of approximately 3% or 4,847 million baht. What the government should do before liberalizing foreigners to buy real estate first. Therefore, you should proceed as follows. Suppressing the use of nominees, improving the tax system like in the case of Thai people buying houses in Europe and America, such as allowing foreigners to pay purchase tax. This may be set at 10-20%, prohibiting foreigners from buying second-hand houses to prevent them from stealing them from Thai people.

Do not resell within the first 3 years to prevent speculation, cancel the government announcement in 1999 that allowed foreigners to bring in 40 million baht to buy 1 rai of land for living, because in the past this type of measure did not help with Real trading, cancellation of investment promotion measures according to the Investment Promotion Board announcement No. 6/2022 that allows foreigners to purchase 5 rai of industrial estate land for business, 10 rai for residences of foreign executives, and 20 rai for building residences. Housing for the workers of that business (It does not have to be located next to each other) because it is a measure that encourages foreigners to directly purchase and occupy Thai land, etc.

   We should have measures in place to allow foreigners to buy real estate without hesitation.

Source:https://www.thansettakij.com/real-estate/588814

at 20/2/2024

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