Thailand‘s real estate industry seems to have won its case for extending the tax exemptions introduced last year to boost the property industry.
A waiver of property tax may not be renewed, but incentives aimed at homebuyers such as reductions in mortgage and transfer fees should stay in place past their scheduled expiry in March, Atip Bijanonda, president of the Thai Condominium Association, told the Bangkok Post.
‘This is very welcome news,’ said Cyrille Hareux of Bangkok-based real estate agency Company Vauban.
‘Above all, it shows that the government values the industry and responds to its needs. The next big change we are all hoping for is an extension of leasehold.’
The Thailand Trade Representative Office (TTR) is preparing to lobby the government for changes in leasehold and freehold legislation.
The TTR is consulting with foreign chambers of commerce in Thailand to draft proposals for easing the current 49% limit on foreign ownership of units in condo buildings.
In addition, the office will seek legal amendments to enable leasehold owners to automatically extend their 30-year lease for another two 30-year terms.
‘I am optimistic that Thailand will recognise how welcome these changes would be for the country as well as the property industry,’ said Cyrille Hareux.
‘In the long term, these moves can put Thai real estate way ahead of its regional rivals.’