A property research firm recommends that the government prioritize ensuring that Thai citizens can afford homes and proposes limiting areas for expanding foreign condo ownership to specific zones, even within a single province, to mitigate opposition.
Vichai Viratkapan, the acting director-general of the Real Estate Information Center, suggested that the Thai government could explore strategies similar to those employed by Singapore to underscore the importance of home affordability for its nationals.
Despite its small size, Singapore has successfully managed foreign property ownership by implementing various policies and measures to maintain affordable housing options for its residents. Vichai noted Singapore’s approach, highlighting policies such as public housing development offering units at subsidized rates for a broad spectrum of the population.
Singapore’s Central Provident Fund, funded by both employees and employers, can be utilized for down payments and monthly mortgage payments. Additionally, the country provides housing grants and subsidies to enhance housing affordability for different segments of the population, offering financial aid to lower and middle-income families to support their first home purchases.
To regulate speculative purchases and ensure housing affordability, Singapore enforces cooling measures such as stamp duties for multiple property owners and foreign buyers, alongside tightening loan-to-value limits.
Vichai emphasized that Singaporeans prioritize owning homes over concerns about long waiting lists, as the government enforces limits on each nationality’s property ownership to prevent dominance.
While this model may not seamlessly translate to Thailand due to its expansive land availability for condo development, the focus remains on addressing affordability concerns for Thai citizens amid potential increases in foreign ownership quotas.
To mitigate potential impacts on Thai affordability, property associations recommend restricting increased foreign ownership quotas to specific zones, like districts in Bangkok, Phuket, and Pattaya. Revenue generated from taxes or fees collected from foreign buyers in projects with expanded quotas could be channeled into a housing fund to facilitate low and middle-income Thai individuals in obtaining mortgages with favorable terms.
Although increasing foreign purchasing power may be necessary given weak demand from local buyers, Vichai stressed the paramount importance of considering Thai citizens’ affordability throughout any adjustments in foreign ownership quotas.
