FIRST WITH THE NEWS: The President of Thailand’s Agency for Real Estate Affairs (AREA) has called for controls to reduce the numbers of foreigners buying Bangkok property.
Dr. Sopon Pornchokchai said: “If there is no control over foreigners buying property, Thai people would be in trouble in the future.”
He justified his comments by saying that the growth in income among Thais would be a slower compared with the growth in house prices driven by foreigners buying Bangkok property.
“Some measures should be adopted, such as a higher stamp duty for foreigners and the like,” he suggested.
He added that his agency believes that foreign buyers are responsible for 20 percent of all property purchases in the Bangkok Metropolitan region.
Whilst murmurings of such controls have been around for several years, this is the first time a prominent property industry figure has gone on-the-record to call for them to happen.
Andrew Batt, the Founder and Editor of ThailandProperty.News, said any move to restrict foreigners buying Bangkok property has the potential to case significant economic issues to Thailand’s real estate market, and also to its agents and developers who are investing significant amount to market their properties to overseas buyers.
“Given that some projects are selling-out their foreign quota due to a lack of real demand from Thai buyers, any moves to penalise foreign buyers will merely send them looking elsewhere.”
Cambodia, Vietnam and the Philippines are seeing increasing interest from Chinese buyers, which make up about 80 percent of the foreign buyers throughout Bangkok right now.
AREA is recongnised as being the largest and most comprehensive real estate information centre in Thailand.
What do you think about foreign property buying restrictions in Thailand? If you’re Thai is this a good thing to curb rising Bangkok property prices? If you’re a foreigner and considering a Bangkok property purchase, would an additional tax force you to look elsewhere? Have your say …