A leading global property firm has urged the Thai government to relax its rules on foreign property ownership in order to stimulate the countryââ¬â¢s economy. CB Richard Ellis believes that by allowing more foreigners to buy property in Thailand, the economy could benefit significantly.
Rules should be relaxed to let more foreigners buy property in Thailand
In a new report, the company said: ââ¬ÅSensible changes to current policy would have a dramatic and positive impact on Thailandââ¬â¢s economy. At a time of fragile global economic recovery, any incremental income that can be gained from international investment should not be lightly ignored.ââ¬Â
Many other Asian property markets have either no restrictions or have significantly reduced the restrictions on foreign investment in property. Hong Kong has very relaxed property laws whilst Singapore has also relaxed its restrictions, targeting some new developments specifically at foreign buyers.
The report from the property company adds: ââ¬ÅProperly handled, the contribution to the wider Thai economy could be significant without any material risk to issues of sovereignty or adversely affecting social or economic conditions.ââ¬Â
Thai banks also urged to consider lending to foreigners
In the report, CB Richard Ellis also argues that it would be beneficial for Thai banks to agree mortgages secured on Thai property to foreign buyers.
ââ¬ÅThis would have considerable benefits as all current inbound investments are on a 100% cash basis. This would benefit residential developers, resort developers, construction contractors, and the Thai banking system.
ââ¬ÅSensible restrictions and controls could limit the level of debt and the banks could charge foreigners a premium over Thai borrowers, probably of one to two percentage points. Foreign investors would rush to take up onshore loan facilities should this be allowed. They would also, in our view, accept specific and tighter controls on repossession in the event of default.ââ¬Â
