Thailand is one of the most popular countries for foreigners to invest in real estate. With foreigners playing an increasingly significant role in purchasing condominiums, what is the magnitude of the investment? Thailand should implement constructive measures for the benefit of the nation and its people.

 

Dr. Sopon Pornchokchai, President, Agency for Real Estate Affairs (www.area.co.th), surveyed the sales of condominium units in all projects currently on sale, totaling nearly 2,000 projects in Bangkok and its surrounding areas. The findings reveal data that can be used to inform policy and planning by the government, private sector, and the public, as follows:

 

 

By the end of 2025, foreigners were estimated to purchase 6,160 new condominium units in Bangkok and its surrounding areas from developers – the highest number since the COVID -19 pandemic began in 2020. These purchases accounted for 23.5% of the total number of condominium units sold by developers in 2025, with a total sales value of 29,793 million baht (USD 946 million), or approximately 26.6% of the total value of all condominium units still in stock and expected to be sold in 2025 .

 

However, prior to the COVID -19 pandemic, foreigners purchased more condominiums than they do now. In 2019, foreigners bought 6,558 units (more than the number expected in 2015), but this represented only 12.1% of the total number of condominiums sold to developers that year. In terms of value, foreigners purchased 30,516 units (higher than the 2015 figure ), but this only accounted for 14.6% of the total value of condominiums sold to developers that year. The proportion of condominiums sold to foreigners in 2019 was not very high; Thai buyers remained numerous because the national economy had not yet declined as it has today.

 

Since the COVID -19 pandemic began in 2020, only 1,017 condominium units were purchased by foreigners, a massive decrease (from 6,558 units in 2019) or a drop of only 16%. The situation worsened in 2021, with only 1,243 units purchased by foreigners. The situation began to improve in 2022, with foreign purchases increasing to 4,203 units, and further increasing to 5,036, 5,748, and 6,160 units between 2023 and 2025, respectively. Similarly, the value of condominium purchases by foreigners also increased.

 

The value of condominium purchases in 2025, at 29,793 million baht (USD 946 million), was significantly less than the 39,640 million baht (USD 1,258 million) purchased in 2024. This was largely due to the economic downturn in other countries, including Europe, Russia, former Soviet republics, and China, particularly China, which had implemented strict controls on currency outflows. Furthermore, the earthquake on March 26, 2025, may also be a major contributing factor.

 

It can be observed that foreigners purchased condominiums at a higher average price than Thais. For example, in the latest year (2025), foreigners purchased units for 4.836 million baht (USD 153,524), while Thais purchased them for an average of 4.087 million baht (USD 129,746), or 18% higher. However, this is not considered a significant difference. Ideally, there should be a price limit for foreigners to purchase condominiums at a higher rate than for Thais to prevent foreigners from competing with Thais. Such competition would drive up prices due to increased demand, making it more difficult for Thais to buy homes. For example, in Malaysia, foreigners are allowed to purchase residential properties at prices of approximately 16 million baht (2 million ringgit or USD 508,000) in Kuala Lumpur, and in Indonesia, the minimum price for foreigners is 10 million baht (USD 330,000).

Even if, by the end of 2025, foreigners do not purchase 23.5% of the total number of condominium units or 26.6% of the total value purchased by foreigners, the residential condominium development business would likely decline even further. However, for the benefit of the nation and its people as a whole, Thailand should have certain regulations in place.  Key measures that should be in place before allowing foreigners to purchase real estate is a tax measure, namely:

 

1. Foreign nationals are required to pay a purchase tax, such as approximately 20% of the value (Singapore collects 60%, Europe collects 10-20%).

 

2. Land and building tax should be levied at 0.5%-1.0% based on the true market value, because Thais already have to pay this tax every year when they buy houses abroad.

 

3. Capital gains tax should be levied at approximately 20% of the profit. For example, if you bought something for 6 million baht and sold it for 10 million baht, the profit of 4 million baht would be subject to a 20% tax, resulting in a tax amount of 800,000 baht.

 

4. Inheritance tax should also be levied based on true market value, as is the case in many developed countries.

 

5. Set limits on the number of units that can be purchased, such as one unit, instead of allowing speculative buying or opening hotels within condominiums, etc.  In China, it is only one units allowed.

 

6. The eligibility criteria for buyers are those who will reside in Thailand or have already resided in Thailand for at least one year; they are not allowed to buy for speculative purposes without any screening process.

 

If we allow foreigners to buy without any internationally accepted measures in place, this would be a big disadvantage to Thais and the Thailand at large.