Government Considers Longer Leasehold terms.

The government is considering allowing greater foreign ownership in property firms and extending leasehold periods beyond 30 years to stimulate the business, according to Finance Minister Surapong Suebwonglee.

The amendment would stimulate market segments that have been hit by sluggish demand, he said yesterday.
”This has been discussed quite seriously over the past two to three months. We need to think about the percentage of shareholding and leasing access compared with the number of years. The crisis that we have had in the past two years led us to think and look at a new paradigm,” he said at an investor forum held by Euromoney.
Dr Surapong said the government would consider new rules on leasing more on par with the region. The government has also abandoned a controversial proposed change to the Foreign Business Act, which tightened the definition of foreign ownership to promote foreign direct investment, he added.

Longlom Bunnag, the chairman of the real estate agency Jones Lang LaSalle (Thailand), said property related to tourism and recreation was expected to benefit the most from any changes because of high demand. (more…)