Calls grow for the government to address Chinese investors' daily condo rentals

The Thai real estate sector highlights the issue of daily condo rentals, likening it to zero-dollar tours, and urges authorities to enforce the law to prevent competition with hotels. They also recommend quickly restructuring the market to accommodate long-term foreign investment.

Recent reports have highlighted a rising trend of Chinese investors purchasing condominium units in Thailand to rent out on platforms like Airbnb, catering to large numbers of tourists and effectively operating as hotels. This has led to dissatisfaction among condo residents and complaints from hotel associations, citing the negative effects on the local hospitality industry.

Suntorn Sathaporn, President of the Real Estate Business Association, addressed the growing issue of illegal daily condo rentals, particularly those involving Chinese tour groups renting units to bypass legal restrictions. He emphasized that this practice results in large groups of tourists occupying condos, without regard for the impact on Thailand's hotel industry. These actions, he noted, are illegal and violate the Condominium Act.

Prasert Taedullayasatit, President of the Thai Condominium Association, warned that this problem is likely to escalate as Thailand continues to attract foreign investors due to its appeal as a global property market. However, he pointed out that Thailand lacks the necessary infrastructure to accommodate long-term foreign investments effectively.

Prasert called for the establishment of a more structured real estate market, proposing measures such as raising the foreign ownership limit in condominiums from 49% to 75%, while also restricting ownership in certain areas and imposing taxes on long-term ownership and rentals. These actions would help balance foreign investment with the protection of Thai citizens’ interests.

This approach not only aims to resolve the current condo rental issues but also seeks to create a sustainable legal and tax framework that will support affordable housing for low- to middle-income Thai citizens. The real estate sector, Prasert added, requires government support in the form of legal reforms and a fair taxation system to attract foreign investments.

In a competitive real estate market, finding the right balance between promoting foreign investment and protecting Thai citizens' rights is crucial. Prasert stressed that addressing daily condo rentals within the legal framework is the first important step to solving these challenges.

Rangsiman Rome, a Member of Parliament from the People’s Party and Chairman of the National Security Committee in the House of Representatives, has received numerous complaints about companies where 80% of their projects are owned by Chinese nationals. He highlighted that this situation presents new challenges, potentially leading to further complications. Rangsiman emphasized that the government should take proactive measures to address this issue, rather than leaving it to self-regulation.He also pointed out that some companies focus specifically on international clients, which increases the likelihood of properties being rented out or converted into hotel businesses. Rangsiman urged the government to engage in discussions with real estate companies to find solutions, rather than addressing the issue only after problems arise.

If there are existing laws that need to be amended, he suggested that they be revised promptly. Furthermore, properties that have already been sold and leased to foreign nationals must comply with legal requirements. Rangsiman concluded that immediate action is needed, as failure to address these issues could lead to condominiums functioning more like hotels, with long-term consequences.

(2025/02/26-00:00)