The Thai government is considering a plan that would see foreign investors become eligible for 99-year land leases and several of the country’s real estate experts are supporting this move, reports local media. While nothing has been decided yet, the proposed regulations would increase leaseholds from 30 to 99 years in select locations.
The belief is that longer lease contracts for both residential and commercial property will help the economy recover. It will also improve confidence among foreign investors who may decide to expand upon investments in Thailand.
“Although the current law allows a 30-year lease contract and a renewal for another 30 years, long-term leases are more reassuring for foreign investors. If the government opens up the opportunity for foreign buyers to hold residential leases for up to 99 years, like Singapore and Malaysia do, it will boost residential demand as the country is the gateway to the Asean Economic Community,” says Thai Condominium Association President Prasert Taedullayasatit, to The Nation.
The government is considering extending the leaseholds in the special economic zones of the Eastern Economic Corridor (EEC) to 99 years., adds the newspaper. The move would see the initial lease span 50 years with the option of a renewal for a further 49 years. The current 30-year leasehold terms are not attractive to foreign investors since it creates long-term uncertainty. One example of this is when landowners promise to renew the lease after the 30-year period ends but then change their mind.
“The extended leasehold contracts from 30 years to be 99 years, which is limited to the EEC zones, would be seen by foreign investors as a key reason to expand their investments. It will not have any effect on local investors because the leaseholds would not involve the sale of land to foreigners,” says Issara Boonyong, Chief Executive Officer of Kanda Group.
Source: http://www.ddproperty.com/th/%E0%B8%82%E0%B9%88%E0%B8%B2%E0%B8%A7%E0%B8%AD%E0%B8%AA%E0%B8%B1%E0%B8%87%E0%B8%AB%E0%B8%B2%E0%B8%A3%E0%B8%B4%E0%B8%A1%E0%B8%97%E0%B8%A3%E0%B8%B1%E0%B8%9E%E0%B8%A2%E0%B9%8C-%E0%B8%9A%E0%B8%97%E0%B8%84%E0%B8%A7%E0%B8%B2%E0%B8%A1/2017/4/151501/real-estate-experts-support-new-lease-terms-for-fo/?utm_source=pgth-newsalert&utm_medium=edm&utm_campaign=dailynews-27Apr2017&utm_content=links
