Thailand foreign ownership 'worry'

According to its property ombudsman, around a third of the land in Thailand is now owned by foreigners. There are worries that this level of overseas ownership could present problems in the future, and that it could become critical as soon as 2015 when the Asian Economic Community is due to be formed.
 
Authorities are looking at ways of strengthening the laws governing land ownership in Thailand.

Not surprisingly the estate agents in the country take a different view, and say there are still plenty of opportunities available to buy property in Thailand, and point out that the market is still attractive, especially as tourism levels are increasing steadily.

Data from the Tourism Authority shows tourism levels dropped only slightly after the 2004 tsunami and during the political riots in 2009 and 2010, and last year broke all records in spite of the floods. The most popular property purchases for foreigners are condominiums in Bangkok, and other sought-after destinations are Chiang Mai and Phuket, both of which are well-known holiday destinations.

At the moment property laws only allow foreigners to lease land and property up to a maximum of 30 years, but the loophole allows investors owning more than 50% of a Thai registered company to legally purchase the land.

This loophole has been open to exploitation, as individuals have been listing a false company using nominee shareholders in order to purchase land. Officials are beginning to clamp down on this practice, and are checking out the credentials of prospective buyers much more thoroughly.

Source: Property Abroad