Thailand urged to tighten rules on foreign condo ownership

Thailand’s consideration of an expanded foreign ownership quota for condominium units is being viewed as a possible measure to attract overseas investment, support the property sector and improve liquidity in a market still facing a slowdown.

However, the proposal carries both opportunities and risks that require careful assessment, particularly over Thai people’s access to housing, property speculation and the long-term implications of foreign ownership.

If the government moves ahead with a higher foreign ownership quota for condominium units, the policy should be accompanied by stricter, more transparent and more effective regulatory measures. The aim should be to balance investment promotion with the long-term interests of Thailand and Thai citizens.

Debate should move beyond “selling the nation”

Dr Sopon Pornchokchai, president of the Agency for Real Estate Affairs (AREA), argued that the debate should not be framed simply as “selling the nation”.

He noted that only a limited number of condominium projects in Thailand have reached the full 49% foreign ownership quota. Other rights-based property arrangements may also remain available and are often attractive to foreign buyers.

Sopon also pointed out that low-priced condominiums are generally not the main target for foreign buyers, while foreign purchases accounted for less than 20% of total condominium purchases last year.

Thai buyers still make up the majority of the market, he argued.

Foreign condo ownership needs different conditions

Sopon argued that Thailand and China may have similar condominium structures in some respects, but the conditions applied to foreign buyers differ sharply.

In Thailand, foreign buyers face no residency requirement before purchasing a condominium. In practice, he argued, they can arrive in the country and buy almost immediately. 

China applies much stricter rules, with foreign buyers generally required to have lived in the country for around one to two years before becoming eligible to purchase property.

Price conditions also differ. Thailand does not impose a minimum purchase price for foreign condominium buyers.

AREA’s survey of foreign condominium purchases in Bangkok and surrounding provinces in 2025 found that 14% of units were priced at no more than 2 million baht, 26% were in the 2–3 million baht range, and another 26% were priced between 3 million and 5 million baht. This means about two-thirds of foreign purchases were priced at no more than 5 million baht.

By comparison, Sopon noted that condominium prices in major Chinese cities can reach around 200,000–300,000 baht per square metre, with typical minimum unit sizes of about 50–60 square metres. This means units bought by foreigners in China are likely to cost roughly 10–20 million baht or more.

He added that some other countries impose minimum purchase prices, such as Kuala Lumpur at around 16 million baht and Indonesia at around 10 million baht.

Unit limits and purchase purposes come under scrutiny

The number of units that foreigners can buy is another key issue. In Thailand, a foreign buyer may purchase multiple units as long as the building remains within the legal foreign ownership quota of 49%.

Sopon also warned that nominee structures may be used in some cases. In certain condominium projects in Bangkok, Pattaya and Hua Hin, he claimed that foreign owners already play a major role in juristic management, with some records kept in foreign languages.

He also noted that special rules in the Eastern Economic Corridor allow foreign ownership of condominium units to reach up to 100% in some cases.

China, by contrast, allows a foreigner to buy only one unit, he pointed out.

The purpose of the purchase is also treated differently. Thailand does not clearly specify that a foreign buyer must purchase a condominium for personal residence. China, according to Sopon, requires foreign buyers to use the unit only as their own residence.

Speculation, short-term rentals and tenure raise concerns

Speculation is another concern. In Thailand, foreign buyers can purchase condominium units for resale or investment. Sopon warned that this could encourage speculative activity among foreign buyers. China takes a much stricter approach because of concerns that foreign speculation could disrupt its condominium market.

Short-term rentals are also an issue. In Thailand, daily rental of condominium units is not generally supported by law, but in practice such activity continues in many buildings, including through key boxes and self-check-in arrangements.

Sopon argued that China prohibits such practices more strictly and does not allow foreign investors to use residential units freely for short-term rental businesses.

Ownership duration also differs. A condominium unit in Thailand can be held indefinitely, effectively until the building is demolished or becomes unusable. In China, land-use rights are generally limited to 70 years, while foreign buyers may acquire rights for 50–70 years depending on the property. If the building is older, the remaining period may be much shorter.

If a condominium building in Thailand is demolished or collapses, co-owners still share ownership rights over the land. In China, Sopon argued, the land ultimately remains state property once the land-use period ends.

Thai property taxes seen as too low

Sopon also highlighted differences in property taxation. In Thailand, a first residential property with an official appraised value above 50 million baht is subject to land and building tax at only 0.02%, or 200 baht per million baht of official appraised value. These official valuations are often far lower than market prices.

He compared this with China, where he said property tax can reach 1.2% of market value, calculated according to the remaining land-use period of each unit. In his view, foreign buyers of condominium units in Thailand face an extremely low annual tax burden, even for second homes.

Rental income is another area of concern. Thailand no longer has a separate annual rental tax in the same way as before, as the issue is covered under the land and building tax system. In China, Sopon argued, landlords must pay tax of up to 12% of rental income if a unit is leased out.

Capital gains tax also differs sharply. In Thailand, Sopon argued that the tax burden on resale gains is relatively low. In China, gains from the resale of condominium units are subject to a minimum tax of 30%, rising in stages to 60%, similar to some systems in Europe.

Foreign purchases could reshape the Thai market

Sopon warned that buying a condominium in China for resale would involve heavy taxation, while Thailand imposes far fewer costs and restrictions. This, he argued, makes Thailand more attractive for foreign buyers seeking investment gains rather than actual residence.

“The purchase of condominium units by foreigners in Thailand therefore amounts to them competing with Thai buyers, because we have no minimum purchase price,” he pointed out.

He warned that some condominium buildings could eventually become dominated by foreign buyers from a single nationality, creating long-term enclaves within Thai cities.

He also warned that the hotel sector could be affected if large numbers of condominium units, or even entire buildings, were converted into illegal hotel-style operations. Sopon cautioned that such practices could later be tolerated or legalised.

Thai property developers may welcome an expanded foreign quota because it could help them clear unsold inventory. However, Sopon argued that policymakers should carefully consider the wider consequences, particularly whether such concentrations of foreign ownership could create security concerns in the future.