Thailand Approves Foreign Condo Ownership Expansion to 75%

Thailand's cabinet has approved a landmark amendment to the Condominium Act that raises the foreign ownership quota in registered condominiums from 49 percent to 75 percent, marking the most significant liberalization of Thailand's property ownership rules in decades. The amendment, which takes effect on July 1, 2026, is designed to attract international capital and reinvigorate a property market that has struggled with oversupply in key segments.

Scope of the Changes

The new rules apply to condominium projects in designated zones across Bangkok, Pattaya, Phuket, Chiang Mai, and Hua Hin. To qualify for the higher foreign ownership threshold, projects must be valued at a minimum of THB 100 million and units purchased by foreigners must be priced above THB 5 million, effectively targeting the mid-range to luxury segments.

Deputy Prime Minister and Finance Minister Pichai Chunhavajira emphasized that the changes are carefully structured to protect affordable housing for Thai nationals. "Units below THB 5 million are excluded from the expanded quota, ensuring that entry-level housing remains accessible to Thai buyers," he stated during the announcement at Government House.

Market Reaction and Developer Sentiment

Listed property developers on the Stock Exchange of Thailand rallied sharply following the announcement. Sansiri, one of Thailand's largest developers, surged 12 percent on heavy volume, while Ananda Development gained 9.5 percent and Origin Property rose 8.2 percent. The SET Property Development Index posted its best single-day performance since 2020.

Sansiri CEO Apichart Chutrakul called the amendment a game-changer for the industry. "We have been losing potential foreign buyers, particularly from China, Hong Kong, and Taiwan, to competing markets like Malaysia and Vietnam due to ownership restrictions. This levels the playing field," he said, adding that Sansiri plans to launch three new internationally-targeted projects in Bangkok and Phuket within the next six months.

International Buyer Interest

Real estate agencies report immediate spikes in foreign buyer inquiries. CBRE Thailand noted a 60 percent increase in website traffic from mainland Chinese IP addresses within 48 hours of the announcement. Knight Frank Thailand reported surging interest from Hong Kong and Singaporean buyers, many of whom had previously been deterred by the 49 percent quota that often left popular projects fully allocated to foreign buyers.

The Chinese buyer segment is expected to be the largest beneficiary. Data from Juwai IQI, the Asia-focused property technology firm, shows that Thailand consistently ranks among the top three overseas property destinations for Chinese buyers, behind only Japan and Australia. The firm projects that annual Chinese investment in Thai condominiums could increase by 40 to 50 percent under the new rules.

Concerns and Safeguards

The amendment has not been without controversy. Several opposition parties raised concerns about the impact on Thai homeownership rates and potential price escalation in popular areas. In response, the government included several safeguards in the legislation, including a mandatory five-year holding period for foreign-owned units before resale, and a requirement that foreign buyers maintain a Thai bank account with a minimum balance equivalent to the unit's purchase price for three years.

The Real Estate Information Center (REIC) projects that the policy could generate an additional THB 80 to 120 billion in annual foreign investment in the condominium market, representing a significant boost to the THB 700 billion overall residential market. However, REIC Director Vichai Viratkapan cautioned that the impact will take 12 to 18 months to fully materialize as developers adjust their sales strategies and marketing efforts.

Regional Competitive Landscape

Thailand's move places it in direct competition with Malaysia, which offers freehold ownership to foreigners under its Malaysia My Second Home program, and Vietnam, which permits foreign ownership of up to 30 percent of units in a condominium project. Industry observers note that Thailand's combination of lifestyle appeal, relatively low costs, and now more liberal ownership rules could make it the preferred destination for Asian property investors seeking diversification outside traditional markets like Singapore and Hong Kong.