FDI vice chairman opposes increasing foreign ownership ratio for condos

A vice-chairman of the Federation of Thai Industries (FDI) on Sunday expressed his opposition to the Interior Ministry’s plan to increase foreign ownership of condominiums to 75% of usable space.

Isares Rattanadilok Na Phuket noted that his views did not represent the FDI but he feared that the ratio increase would allow foreigners to buy condo units and rent them on a daily basis, thus severely affecting the Thai hotel industry.

Many condo owners have reportedly rented their units via the popular Airbnb vacation rental app.

Last Tuesday (June 18), Deputy Prime Minister Phumtham Wechayachai asked relevant agencies to review the feasibility of the measure proposed by the Interior Ministry to increase foreign ownership of condos to 75% of usable space and raise the leasehold period on a property for foreigners from 50 years to 99 years.

Interior Minister Anutin Charnvirakul on Friday played down fears about voting rights of foreigners, saying the measure would come with conditions to limit foreigners’ voting rights if ownership exceeded 49%.

Isares Rattanadilok Na Phuket

Isares said he believed many large condos already have more than 49% foreign ownership via Thai nominees.

He called on the government to strictly enforce the law against daily rental of condo units by owners.

He noted that hotel operators had to comply with several legal measures and to seek licences but owners of condo units compete against hotel businesses by allowing tourists to rent their rooms on a daily basis.

He said condo units’ owners did not pay taxes and did not provide security, so their cost is much lower than the cost for running a hotel.

He said eventually, foreign tourists would choose to rent condo rooms of their compatriots so hotels would not benefit from the tourism boom.

Isares also called on the government not to sell land to foreigners at all, saying they have more purchasing power than Thais.