Thailand Proposes Extending Land Leases to 99 Years and Increasing Foreign Condo Ownership to 75%
Thai Prime Minister Settha Thawisin has announced a proposal from the Ministry of Finance to extend land leases to 99 years and increase the foreign ownership limit for condominiums to 75% as part of an economic stimulus strategy. Currently, Thai law permits 30-year leases. Extending them to 99 years is seen as a move to align with international standards and make property ownership fairer for foreign investors.
Political and Industry Reactions
The proposal has faced criticism from both the Move Forward Party (the main opposition party) and the Thai Hotels Association. A similar proposal to allow foreigners to buy land for residential use was shelved two years ago following fierce opposition.
Under the new plan, the proportion of foreign-owned units in a building would increase, but land ownership would remain restricted to Thai nationals.
Prime Minister Settha Thawisin dismissed the concerns as overblown:
“It’s an extension of leases, not a sale. Many countries offer 150-year leases — 99 years is reasonable for Thailand.”
Regarding the increase in foreign condo ownership from 49% to 75%, Settha emphasised that voting rights would remain capped at 49% to maintain Thai majority control at 51%.
Industry Insights
1. Boost to Demand and Development
Phattarachai Taweewong, Research Director at Colliers Thailand, noted that higher foreign ownership caps would:
✅ Stimulate demand, particularly in prime tourist destinations
✅ Attract more developers by lowering land acquisition costs through longer leases
✅ Make Thai property more attractive to foreign investors, since a 30-year lease is often considered too short
“Extending lease terms would make Thailand more competitive with global property markets.”
2. Sustainable Growth for Thai Real Estate
Prasert Taedullayasatit, Chairman of the Thai Condominium Association, called the proposal:
“A long-term plan for sustainable growth in both commercial and residential real estate.”
He added that increasing the foreign ownership cap would reduce reliance on proxy ownership structures, which are technically illegal but commonly used by foreign buyers.
Potential Impact on the Property Market
📈 Second-Hand Market Likely to Benefit the Most
- Newly built properties already have long lease terms, so the extension is unlikely to significantly affect new sales.
- However, high-value older properties in prime locations with shorter lease terms would become more attractive to foreign buyers under the new policy.
- The resale market could see a rise in demand and price premiums as foreign buyers gain more options.
💼 More Flexibility for Foreign Investors
- A 99-year lease is closer to outright ownership, making Thai property more appealing to long-term investors.
- Foreign buyers currently constrained by the 30-year lease limit would have greater confidence in investing in Thai real estate.
🌍 Global Competitive Advantage
- Countries like Singapore and Hong Kong already offer long-term leases (up to 99 years), making Thailand’s proposed changes more competitive internationally.
Zagdim Insights
The proposed changes to land lease terms and foreign condo ownership limits could significantly boost Thailand’s real estate market, particularly in tourist hotspots and prime locations. While political opposition remains, industry experts view the policy shift as a strategic move to:
✔ Increase foreign investment
✔ Stimulate the second-hand property market
✔ Improve Thailand’s global competitiveness in the real estate sector
If approved, the changes could position Thailand as a more attractive destination for long-term foreign property investment.
