THURSDAY, March 28, 2024
nationthailand

Base price will stop foreigners using proxies to grab Thai land: TREA

Base price will stop foreigners using proxies to grab Thai land: TREA

The Thai Real Estate Association (TREA) said it will meet with the prime minister to propose ways of stopping foreigners from abusing the new law permitting them to buy Thai land.

The Cabinet approved the directive permitting foreigners to buy land on October 25. The move is aimed at attracting investment to boost the economy.

The directive allows foreigners to purchase property and up to one rai (1,600 square metres) of land if they invest at least 40 million baht for a minimum of three years. To be eligible, they must also qualify for the Long-Term Resident (LTR) visa.

The policy has sparked fierce public and political opposition, with critics accusing the government of putting the country up for sale. It has responded by promising to revise the draft.

TREA president Meesak Chunharakchot said on Monday he will meet with PM Prayut Chan-o-cha on Thursday (November 10) to present the association’s opinions on the draft.

Measures must be set to deter foreigners from using nominees to buy land next to their one-rai plots and stitching it into larger plots, said Meesak.

One way to do this would be to set a minimum price of land for foreigners, he said.

For land plots up to 50 square wah (200sqm), he suggested a minimum price of 5 million baht in Greater Bangkok and 3 million baht in other provinces. For 51-100sqw, he said it should be 10 million baht and 8 million baht; for 101-200sqw it should be 50 million baht and 20 million baht; and for 201sqw to 1 rai, 100 million baht in Greater Bangkok and 30 million baht in the provinces.

For properties in residential projects, foreign owners should have half the rights of Thais according to area owned when it came to voting on matters related to the project, said Meesak.

The new law should also require evidence that the money used to buy properties in Thailand comes from legal financial institutions, he added.

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