Foreign ownership quotas for condos should be increased in certain areas to stimulate the economy as increasing demand from foreign buyers last year is expected to continue this year.
Brenton Mauriello, chief executive of SET-listed developer Raimon Land, said the maximum foreign ownership quota for condos should be increased to 60% from 49%.
"This could have a great impact and does not have a negative effect on the country," he said.
Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said foreign ownership quotas for condos in many popular destinations for foreigners, such as Phuket and Pattaya, are fully occupied in several projects.
"Certain locations do not attract domestic buyers, so the government should increase foreign ownership quotas in those areas to stimulate the economy as the condo market in such locations depends on foreign demand," said Mr Vichai.
Some projects, such as Laguna Lakelands in Phuket, have addressed the issue by reserving units in each condo project for leasehold contracts, with prices 10-15% lower than freehold units, as the majority of buyers were foreigners.
According to the REIC, the number of condo transfers by foreigners in 2023 totalled 14,449 units worth 73.1 billion baht, recording a 25% and 23.5% increase, respectively, which was higher than the pre-pandemic levels.
"Key drivers include the positive impact of the reopening in 2021, the introduction of free visas for Chinese and Kazakhs last year and ongoing geopolitical conflicts," said Mr Vichai.
The Chinese were the largest nationality receiving condo transfers, accounting for 45.8% of the total units and 46.7% of the total value, followed by Russians, Americans and Myanmar nationals.
The most popular price range was 3 million baht and lower, representing 49.4%, and the most popular size was 31-60 square metres (50.3%).
Chon Buri had the largest number of condo transfers by foreigners which accounted for 41.1% of the total nationwide, which was the first time in its history, followed by Bangkok (38%). Together, they also comprised 85.4% of the total value.
The proportion of foreigners receiving condo transfers nationwide, in terms of both unit number and value, rose to 13.4% and 24%, respectively, in 2023, up from 10.8% and 20.5% in 2022 and higher than 10.1% and 15.6% in 2019.
"The figures show us that foreign demand has recovered and the momentum will continue this year," Mr Vichai said.