Can foreigners buying houses in Thailand help stimulating the economy?
Last updated: 6 Aug 2025
408 Views
Many people believe that foreign property purchases will stimulate the economy, but many countries around the world have abandoned this method of economic stimulus, as it's ineffective and creates more problems. Let's look at Thailand.
The Thai Real Estate Information and Appraisal Center, Agency for Real Estate Affairs Co., Ltd., surveyed and projected that foreign-purchased housing units, including both new and resale condominiums, will total 27,741 units by 2023, representing approximately 3.9% of all residential transactions.
Foreigners purchased these units at an average price of 5.824 million baht. Total foreign-purchased housing units nationwide totaled 161.564 billion baht. This amount, if transferred normally, could incur taxes and transfer fees of approximately 3%, or 4.847 billion baht.
This amount likely won't be used to significantly stimulate the economy. However, some claim that foreigners might hire Thais for jobs such as housekeepers or gardeners. This is uncertain, as hiring workers from neighboring countries is likely to be cheaper, and Thais might not benefit from this.
Furthermore, if foreigners purchase these units, This is an illegal transaction, partly through nominees or companies established and sold through them, with the government receiving virtually no income.
On the other hand, if foreigners rent out their houses and condominiums, they could potentially earn a 4% annual return. If prices increase by an average of 3% per year, they could earn a 7% annual return, or 11.309 billion baht, which goes solely to the foreigners. Thai sellers may also profit significantly from this one-time sale.
___________________________________________
Cr. Read more articles at:
Bangkok Business: https://www.bangkokbiznews.com/property/1107020
The Thai Real Estate Information and Appraisal Center, Agency for Real Estate Affairs Co., Ltd., surveyed and projected that foreign-purchased housing units, including both new and resale condominiums, will total 27,741 units by 2023, representing approximately 3.9% of all residential transactions.
Foreigners purchased these units at an average price of 5.824 million baht. Total foreign-purchased housing units nationwide totaled 161.564 billion baht. This amount, if transferred normally, could incur taxes and transfer fees of approximately 3%, or 4.847 billion baht.
This amount likely won't be used to significantly stimulate the economy. However, some claim that foreigners might hire Thais for jobs such as housekeepers or gardeners. This is uncertain, as hiring workers from neighboring countries is likely to be cheaper, and Thais might not benefit from this.
Furthermore, if foreigners purchase these units, This is an illegal transaction, partly through nominees or companies established and sold through them, with the government receiving virtually no income.
On the other hand, if foreigners rent out their houses and condominiums, they could potentially earn a 4% annual return. If prices increase by an average of 3% per year, they could earn a 7% annual return, or 11.309 billion baht, which goes solely to the foreigners. Thai sellers may also profit significantly from this one-time sale.
___________________________________________
Cr. Read more articles at:
Bangkok Business: https://www.bangkokbiznews.com/property/1107020
