From the Bangkok post.
The government should improve controls on land use rather than move to clamp down on foreign investment, according to the real estate company Knight Frank Chartered (Thailand). Foreign investors can buy land in Thailand by two means _ through a long-term lease or through setting up a company that is at least 51% owned by Thais.
Foreign land ownership, always a politically sensitive subject, has returned to the spotlight following allegations of forest encroachment and illegal foreign ownership on Koh Samui. Property value on the island has skyrocketed in recent years, spurred by a boom in luxury resorts and vacation homes.
But Phanom Kanjanathiemthao, managing director of Knight Frank Chartered, said authorities would do better to look at zoning and land use rules rather than seeking to curb foreign investment.
''It's very common for foreign investors to invest in Thai properties like this. You can't block them. It's legitimate. Freehold or leasehold plots have no difference because they will use the land,'' Mr Phanom said.
''Instead, the authorities should find ways to make land utilisation and zoning regulations stricter and more effective, so that you can control them.''
Mr Phanom said foreign investors were becoming confused since the government was a declared supporter of more foreign direct investment.
''The government has to make itself clear about this. What is the policy priority? Promote foreign direct investment and tourism or prohibit foreign investment in land?''
When foreign investors buy Thai properties or land, it spurs economic activity and creates jobs, he said. Real estate-related businesses such as construction, gardening, security, property management and maintenance benefit as well.
''Most foreign investors have high purchasing power and they really develop the land they bought into very good resorts or villas. But Thai landlords have limited funds to develop the way foreigners do,'' Mr Phanom said.
Currently, high-end villas on Samui are selling for up to 40 million baht to foreign buyers. The most attractive areas for foreigners are beachfront land on Chaweng and Lamai beaches and some areas on hills.
The most expensive land is 20 million baht per rai on Chaweng beach, followed by Koh Tao at around six million baht per rai, according to the Agency for Real Estate Affairs Co.
Mr Phanom said the current land encroachment on Samui was not different from what happened on Phuket a few years ago, but the activity on Samui has been on or near hills. The rising popularity of Samui and the consequent property boom has fuelled demand for land but good sites are scarce.
''If the government wants some land back, it could pass a special law to expropriate the land,'' he said.
A member of the National Human Rights Commission earlier this week accused local politicians, including members of the Thai Rak Thai party, of being involved in forest encroachment and land speculation on Samui.
Chaiyapan Praphasawat, a member of the commission's sub-panel on land, water and forest issues, said numerous complaints had been made by island residents about wealthy politicians encroaching on forest land for sale and development.
Corruption at the Lands Department had resulted in the issue of ownership documents for areas designated as public property, the panel said. One village official said more than half of the ownership papers on Samui were unlawfully issued.
State urged to improve controls on land use in Thailand
State urged to improve controls on land use in Thailand
I intend to live forever - so far so good.
