Please see views of Dr.Sopon Pornchokchai on proposed policy of Thai Government on foreign land ownership which was loosely structured.

 

Miss Tan Tam Mei of the Straits Times recently interviewed Dr.Sopon Pornchokchai, President, Agency for Real Estate Affairs on foreign land ownership in Thailand.  The following are the answers.

 

Question: Will the government's proposal help to achieve economic growth and benefit the local real estate market? How?

 

Answer: It won’t because

1. no buying tax unlike Singapore, 30-35%

2. little properties levied at around 0.02% at the assessed value (some one third of market value) when reaching 50 million baht

3. capital gain tax too low too

4. estate tax is very low with a lot of exemption. Whereas it is 55% if the estate is over 160 million Baht

 

During the colonial period, When many British or French we’ll-to-do living in Indochina, they won’t help boost local economy. They just came to use up our resource but took back to their countries

 

 

Question: Why do you think people have reacted so strongly against the plan?

 

Answer: It is so obvious that the condition is too easy. Perhaps easiest in the world. Bringing 40 million baht can buy land up to 1,600 sq.metres

 

 

 

Question: Do you think the proposal has enough safeguards? If not, what more can be done?

 

Answer: Never. We should

1. have minimum prices like in Malaysia and Indonesia (Baht 16 and 13 million respectively)

2. impose reasonable taxes as mentioned above.

 

 

Question: How will local land ownership and property prices be affected should foreigners take up the proposal to own land?

 

Answer: It may be increased. See Canada they cease foreign buying for two years. Please see this link: https://bit.ly/3ECcDfm

 

 

Question: Do you think the proposal will gain traction among the foreigners it targets?

 

Answer: It can be. The amount of 40 million is now Baht 240 million today. In 2009 when Chuan Leekpai started this law Chinese rich were few. Now there are a lot. They can only lease for 70 years in their countries. Also Indian Arab rich can join!!!

 

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