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On July 15, 2022, Prayuth Chan-O-Cha proposed a policy that would allow foreigners to own land for residential use. Under the proposed measure, from September 2022, foreigners are allowed to own up to 1 rai (0.16 acres) if they invest ฿40 million (HK$8.23 million) in Thailand for three years.
Thailand's real estate market has an oversupply of prime property. The new measures put in place by the Thailand government will encourage investment from foreigners and boost the Thai economy. It’s a win-win for the Thailand government and Hong Kong investors.
Benefits of Thailand Property for Hong Kong Investors
1. Popular tourist spots
Thailand is home to some of the most beautiful and popular tourist destinations in Phuket, Bangkok, Pattaya, and Chian Mai. By the end of august 2022, 4.4 million tourists had visited Thailand, an outstanding improvement since Covid 19 lockdown.
An influx of tourists not only benefits the Thailand economy, but it also has real benefits for property investors too. The demand for short-term accommodation at friendly rates secures profits for property owners.
2. Transport and infrastructure
There are 9 modes of transport in Thailand. All of them, tuk tuk, motorcycle taxi, bus, taxi, subway, skytrain, the songthaew, train and flights, provide easy access to even the remotest parts of Thailand. With the BTS skytrain and the MRT subway, the Thailand government continues to boost economic growth and connect people and businesses. For foreign investors, a robust transport system means that their properties are easily accessible.
3. Affordable properties
Thailand property is relatively cheaper compared to property in Hong Kong, Singapore, and China. Luxury apartments, villas, condos, and beachfront properties are available for foreign investors; on average, residential property in a prime location like Bangkok is ฿34 million (HK$7.01 million). Compared to the high property value in Hong Kong, investors can get a prime property at a bargain.
4. Friendlier Thai Laws for Foreign investors
The Thailand government is taking reasonable measures to boost the Thailand economy. Aside from investors now having the opportunity to hold land in Thailand, investors pay an impressive 1% stamp duty tax on the total rental upon the registration of a lease during the entire lease term. Compared to the 15% flat rate Buyer Stamp Duty, Hong Kong investors can own property at reasonable rates.
5. Welcoming locals
When you are far from home, a friendly face makes a huge difference. Thai locals are friendly and welcoming to foreigners. As the property market grows in Thailand, there is also a growing community of foreign investors that provide valuable support and insight.
Thailand is one of the fastest-growing real estate markets worldwide. The scenic mountains, white sand beaches, lively atmosphere, rich culture, and tropical climate will please any investor, but the new measures set by the Thailand government to encourage foreign investors are a even more welcoming for the savvy buyer.
