Luxury Condo Rent in Thonglor

With the resumption of travel between China and Thailand, Chinese investors are keen to seize the opportunity to purchase Thai properties for investment and retirement purposes.

They view Thailand’s real estate market as offering better value compared to China and are making use of the 30-day visa on arrival that is being granted to Chinese passport holders until the end of March.

China’s reopening is giving the Thai economy an additional boost, with the government projecting 7-8 million Chinese tourists in 2023, down from 11 million in 2019.

According to data from Thailand’s Real Estate Information Centre, Chinese buyers have been the largest group of foreign buyers of condominium units in Thailand since 2018, accounting for almost half of the units sold to foreigners.

Chinese buyers have been the biggest group of foreign buyers of condominium units in Thailand since 2018, followed by buyers from Russia, the US, the UK, and Germany.

According to Thailand’s Real Estate Information Centre, Chinese buyers purchased 3,562 units worth a total of 17.94 billion baht ($511 million) during the first nine months of 2022, accounting for 49% of units transferred to foreigners. The average price of units bought by Chinese buyers was 5 million baht, with an average area of 39 square metres.

Thailand recorded 2.14 million foreign visitors in January

The majority of these tourists reportedly came from neighboring countries such as China, Malaysia, and Laos, especially China after Beijing lifted its COVID-19 restrictions.

At least 26 million international visitors are anticipated to arrive in Thailand this year, contributing to the sector’s recovery to 60% of its pre-pandemic level.

China arrivals following the country’s lifting of travel restrictions on January 8 are expected to drive the total revenue from domestic and foreign tourists in 2023 to 2.4 trillion baht, or 80% of the level before Covid-19.

Between November 1 and January 21, more than 233,000 Russians arrived in Phuket, according to data from Phuket International Airport, making them the largest group of tourists to date.

Phuket has long been a favorite to escape Russia’s harsh winter, but a surge in property sales since President Vladimir Putin ordered mobilization in September suggests that many intend to stay longer than the typical holiday.

Russian arrivals have accounted for the third-largest group of tourists since Thailand’s borders were fully reopened and COVID-19 limitations were lifted in October, only behind Malaysian and Indian tourists.

Realtors in the Russian-dominated area of the island say the influx of wealthy tourists have driven prices to record levels as there is growing awareness that there is no end in sight to the war as it enters its second year.

Russia said it had drafted at least 200,000 citizens into Russia’s armed forces and all male citizens in Russia aged 18–27 are subject to conscription for one year of active-duty military service in the armed forces.

Last year, Russians bought nearly 40% of all condominiums sold to foreigners in Phuket, according to the Thai Real Estate Information Center, Al Jazeera reported.

“Most of my clients are 30-35 year olds… They are wealthy high-budget clients,” Phuket real estate agent Sofia Malygaevareal, originally from Russia, told Al Jazeera.

In order to stay on this idyllic island, Russian tourists need housing, schools, jobs, and visas – which takes time in Thailand, where long-term residency is difficult to obtain.

Since Thailand reopened its borders, the island of Koh Phangan also has become popular among Russian visitors trying to escape the war, also reported VOA.

The 2021 Pet-Inclusive Housing Report by the Michelson Found Animals Foundation surveyed a sample of rental housing owners and renters of residential properties with pets in the United States indicates that the habitat allows pets will be easily rented out.

35% of the sample group were residential tenants and had moved out of the previous rented residence to find a new habitat that is suitable for pets, reflecting that there is still demand for housing from those who raise animals.

This is in line with the megatrend Pet Humanization or caring and giving importance to pets as being a member of the family.

Pets are increasingly popular with Thai people

In Thailand, data from Euromonitor indicates that in 2019, approximately 34% of Thai households have dogs and cats, and this will increase to 37% of the total number of Thai households in the country in 2022, reflecting the increasing popularity of Thai people to raise animals.

Part of it comes from animal husbandry activities that help to relax. Amidst the need for home quarantine during the COVID-19 pandemic, Megatrend Pet Humanization is an opportunity for residential developers in Thailand to adjust their strategies to develop residential projects that target specific target groups by developing residential projects that meet the needs of animal husbandry.

Pet Humanization to remain a megatrend in Thailand

SCB EIC views that Pet Humanization will continue to be an important megatrend in Thailand in the future. There are factors that support the trend of the population of Gen Z, Gen Y, and the elderly population who prefer pets as companions to solve loneliness.

Including the trend of smaller families with fewer children or no children which is popular with pets as well. As a result, limitations on the size or nature of housing for raising animals tend to decrease in the future. The strategy for developing low-rise housing may be in the form of offering housing with space for room extension in case the buyer of the residence needs a pet room.

While the strategy for developing condominiums may highlight the selling point of designing rooms with good ventilation for good hygiene for residents and pets.

In addition, using Proptech to facilitate animal husbandry will make a difference and value in the eyes of home buyers especially the automation both light and temperature suitable for pets.

Source : หน้าหลัก | SCBEIC

Taxes in Thailand are governed by the Revenue Code, which follows the concept of a self-assessment system. The Revenue Department of the Ministry of Finance is responsible for administering taxes, which are imposed on regional and national levels.

Direct taxes

Corporate income tax

A company incorporated under Thai laws will be considered as a resident company and be subject to the 20 percent corporate income tax (CIT) rate.

For businesses that are classified as small or medium-sized (SMEs), the CIT rates can be seen in the following table.

Net profit	Tax rates (%)
0-300,000 baht (US$9,106)	Nil
300,001 baht (US$9,107) – 3,000,000 baht (US$91,021)	15
Over 3,000,000 baht (US$91,021)	20

SMEs can get a reduced tax rate if they meet the following criteria:

• Income from the sales of goods and services not exceeding 30 million baht (US$909,844) in any accounting period; and
• Having a paid-up share capital of not more than 5 million baht (US$151,600).

Personal income tax

To be considered a resident taxpayer, the individual must reside in Thailand for 180 days or more in any tax year.

Net income	Tax rates (%)
0-150,000 baht (US$4,321)	None
150,001 baht (US$4,322) – 300,000 baht (US$9,106)	5
300,001 baht (US$9,107) – 500,000 baht (US$15,154)	10
500,001 baht (US$15,155) – 750,000 baht (US$22,736)	15
750,001 baht (US$22,737) – 1,000,000 baht (US$30,315)	20
1,000,001 baht (US$30,316) – 2,000,000 (US$60,631)	25
2,000,001 baht (US$60,632) – 5,000,000 baht (US$151,632)	30
Over 5,000,000 baht (US$151,632)	35

Indirect taxes

Value-added tax

The value-added tax (VAT) rate is currently at seven percent until September 30, 2023, as part of the government’s efforts to boost the economy post-COVID-19. The normal VAT rate was 10 percent rate.

VAT is liable to every person who conducts business in Thailand, which includes manufacturers, importers, and retailers. Businesses that have an annual turnover of over 1,800,000 baht (US$54,597) must register as VAT operators.

Business activities are exempt from VAT, some of these are:

• Taxpayers with sales with less than 1,800,000 baht (US$54,597) per year;
• Educational services;
• Research and technical services;
• Religious activities and public charities;
• Healthcare services;
• Imported goods brought into a duty-free zone;
• Sale of goods related to agriculture; and
• Rent of immovable properties.

Withholding tax

The withholding tax imposed on dividends paid to another Thai company is subject to a 10 percent tax rate. This can be exempt if certain conditions are satisfied under the promotion law or Revenue Code.

Interest paid to non-resident companies is subject to a 15 percent withholding tax whereas it is only one percent for residents. Royalties are subject to a three percent withholding tax for residents and a 15 percent tax on non-residents.

Nature of income	Tax rate (%)
Residents	Non-residents
Dividends	10/0	10
Interest	1	15
Royalties	3	15
Fees for technical services	3	15

Specific business tax

The specific business tax (SBT) is an alternative tax levy on services. Businesses that are excluded from VAT will instead be subject to SBT.

Business type	Applicable rate (%)
Commercial banking or credit financing businesses	3 (although for certain types of banking incomes the rate is 0.01 percent)
Life insurance	2.5
Pawn business	2.5
Businesses with transactions similar to commercial banking	3

Land and buildings tax

Land or buildings which the owner uses for agricultural purposes are exempt from the value of the tax base if the calculation of tax in total does not exceed THB 50 million.

If the tax calculation does not exceed THB 50 million, land or structures that the owner uses for residential purposes and have his or her name included in the household registration certificate on January 1 of the tax year are exempt from the valuation of the tax base.

The maximum tax rates for land and buildings are as…

As companies move away from old-fashioned, sprawling office spaces and gravitate towards flexible workspaces this creates new opportunities for franchise operators and commercial landlords.

The global pandemic has proven a crucible for companies the world over, testing both their resilience and agility. By necessity, they have adapted to new ways of working that reduce inefficiencies such as long daily commutes, expensive offices at prestigious addresses, and large amounts of space with unoccupied desks. Having adapted their operations to think outside the box, it makes little sense to go back to that box in the post-pandemic landscape. 

Of course, that isn’t to say a physical HQ should be eschewed altogether. But as businesses adapt their operations to the new normal, a better method has arisen. 

The hybrid model and its opportunities

Hybrid working allows employees to divide their working hours between a local flexible office space, the company’s headquarters, and working from home. A prospect that is highly desirable to employees – 85% of whom want to work in a hybrid manner from now on rather than returning to the office full time, according to the UK’s Office of National Statistics.

Furthermore, our own research demonstrates that three times as many FTSE 250 companies are looking to use a hybrid office model, compared to those who want to return to their pre-pandemic methodologies. 

It also creates an opportunity for a more streamlined, sustainable and bespoke approach to corporate real estate – one that makes much better business sense than simply doing what’s been done before.

Essentially, it’s about redistributing company office space away from a single, centralised headquarters and making use of flexible workspace closer to where their employees actually live. 

Unlike traditional office leases – where fixed, lengthy terms are common – flexible workspace gives companies the freedom to increase or decrease their workspace portfolio as required as they adapt to the needs of their employees for optimal productivity and satisfaction.

Needless to say, this creates enormous opportunity for both franchise operators and landlords with commercial workspace available. Whether you have a single floor, a single building or multiple properties within your portfolio, there are opportunities to set up flexible contracts with multiple corporate clients who are looking for meeting rooms, shared workspaces, break-out areas, virtual offices and other working facilities. 

Likewise, franchise operators are presented with an exciting new growth industry that offers stability and sustainable growth, given the surge in demand for hybrid solutions among companies of all shapes and sizes. 

Sustainability and stability in an uncertain landscape

Corporate clients, franchise operators and commercial landlords have complimentary needs in these economically turbulent times, and this can enhance the surge towards hybrid working and create new opportunities for enterprising investors. 

As clients strive to find ways to operate more sustainably, providers of hybrid office solutions are perfectly placed to support this. For a start, they can have a strong impact on commuting culture. 

Research from IWG and professional services consultancy Arup found that a typical worker in the UK needs to commute for 58 minutes to reach a city-centre HQ (in the US it’s 55 minutes). By removing the need for the entire team to commute every single day through hybrid working, a business drastically cuts down the collective carbon footprint of its employees. 

Furthermore, by only using the amount of workspace it actually needs, a company avoids wasting light, heating, water and other resources, which translates into significant cost savings, too.

Hybrid solutions can…

BANGKOK (NNT) – The Cabinet has greenlighted a draft ministerial regulation that will enable foreigners to buy a maximum of 1 rai of land in Thailand.

Minimum investment of 40 million baht required

One of the conditions includes an investment value of at least 40 million baht that must be retained for 3 years. The ministerial regulation opens the door for a greater range of investment options for foreigners and can be revised every 5 years.

Prime Minister’s Office Spokesperson Anucha Burapachaisri elaborated on the Cabinet’s approval, in principle, of the drafting of a ministerial regulation on foreign ownership of residential land. The approval was made with regard to the measure calling for economic and investment stimulation by attracting high-potential foreigners to Thailand.

The ministerial regulation will be in effect for 5 years

The Cabinet approval opens the door for a greater range of investment options for foreigners. The ministerial regulation will be in effect for 5 years after its announcement in the Government Gazette.

Mr. Anucha said the draft regulation will designate 4 types of high-potential aliens who will be able to acquire land in Thailand for residential purposes. The 4 categories include high-wealth persons, retirees, individuals who intend to work from Thailand, and specialists who possess certain skills.

Maximum area set to 1 rai (1,600 square meters)

The amount of land that may be acquired shall be no more than 1 rai (1,600 square meters). The land must only be used for self-residency and must be located within Bangkok, Pattaya, municipalities, or other suitable areas as stipulated by the urban planning law.

The alien acquiring land must invest no less than 40 million baht in a business or enterprise and retain the investment for at least 3 years.

The spokesman said the prime minister has affirmed the ministerial regulation can be revised every 5 years to accommodate the circumstances at the time. The Ministry of Interior will now submit the draft regulation to the Office of the Council of State for consideration.

Information and Source

• Reporter : Namo Vananupong
• Rewriter : Tarin Angskul
• National News Bureau : http://thainews.prd.go.th

Thailand has been a popular expatriate destination for investment and retirement for decades. But foreign land ownership has long been restricted.

Author: Prem Singh Gill, Thammasat University

Foreigners can own no more than 49 per cent of any condominium development and are restricted from owning most freehold estates. Yet Thailand is keen to attract wealthy international investors — particularly those from China.

Investing 40 million baht in Thai property

Thailand’s Prime Minister Prayuth Chan-O-Cha proposed a policy that would allow foreigners to own land for residential use on 15 July 2022. Thai officials claim this will boost the economy by luring wealthy foreigners to spend and invest in the country.

Investing 40 million baht in Thai property, securities or funds for a period of at least three years is now one of many preconditions for foreign nationals to own up to 1 rai (approximately 1,600 square metres) of land from September 2022.

Still, there are other ways foreigners can acquire rights to land — including through the ownership of companies, long term leases and other investment schemes available in Special Economic Zones set up by the Thai government.

When deciding to invest in Thai property, most foreign investors invest through companies — allowing a Thai national to arbitrate the property through a business committee on their behalf. Foreign investors can also purchase property through a tax-free scheme set up by the ‘Board of Investment’ agency administered by the Thai government.

Oversupply and unsold inventory

Thailand’s real estate market has recently been characterised by an oversupply of flats. There were over 90 thousand unsold units of condominiums in the Bangkok Metropolitan Region (BMR) in Thailand as of 2020.

By enabling foreign investment, the Thai government aims to provide liquidity to the real estate market by enabling a pool of wealthy investors to invest, boosting the Thai economy and increasing land tax revenue.

As a popular tourism destination and part of China’s Eastern Economic Corridor, many investors from China have ploughed into Thai property — so much so that half of all foreign owned condominiums in Pattaya city, one of the country’s tourist destinations, are under Chinese proprietorship.

Deep-pocketed Chinese homebuyers

While deep-pocketed Chinese homebuyers are seen as saviours of Thailand’s struggling real estate sector, some are disliked for spending their money lavishly and buying property through fake legal partnerships. Some foreign investors even register under a Thai limited company or use a particular leasing policy to engage in money laundering.

Selling land to foreign nationals and having them use the land for residential purposes may worsen land inequality in Thailand. The additional taxes levied to capture the rent from foreign homebuyers will prove another barrier to entry for locals who find themselves increasingly priced out of the housing market. Still, there should be no conflation of allowing foreign land ownership, the acquisition of a bundle of rights over land, with the ceding of Thai sovereignty.

The Phuea Thai Party (PTP), Thailand’s leading opposition party, opposes the scheme. Arguing that nearly 80 per cent of Thai people do not own any land, they claim that allowing foreign ownership will only benefit those who own the majority of land — the upper-middle class and elites. Indeed, the proposed policy is unpopular outside of the military, civil service and politicians — all of whom benefit from a scheme that would distribute the revenue from increased land tax to select groups.

The current leasing policy is criticised not just for allowing foreign land ownership, but for failing to improve the well-being of low-income families. The policy is…

The decline of Bangkok reflects the severe impact of the Covid-19 pandemic on the rental market in the tourism-reliant Thai economy, according to ECA’s latest survey.

Hanoi saw a similar drop of 12 places to 81st place, based on an analysis of data gathered in September 2020.

The survey uses average rental prices for a three-bedroom apartment in the mid-range of the expatriate market.

ECA International has been conducting research into accommodation costs for international executives for more than 20 years to help companies provide the right housing options as part of the overall compensation package for mobile employees. The research compares rental costs in accommodation in areas typically inhabited by expatriate staff in over 360 locations worldwide.

Hong Kong has been named the most expensive location in the world for expat accommodation for a fourth year in a row but still saw rental costs drop considerably due to the effects of Covid-19.

• Hong Kong retains its position as the most expensive accommodation for overseas workers, despite a drop of over 5% in rental costs from last year.
• The impact of Covid-19 on business travel and overseas assignments causes monthly rents to drop by an average of USD 549 to USD 10 769 (HKD 83 466).
• Taipei climbs twenty places in the latest rankings, while tourism hubs such as Bangkok and Hanoi fall.
• New York and Tokyo remain in second and third position in the rankings respectively.

“Rental prices have dropped in many locations across Asia over the past year, but this has been especially notable in locations which are heavily reliant on overseas visitors and residents, such as Thailand and Vietnam.”

Lee Quane, regional director for Asia at ECA International.

Location	Average rent 2021	Average rent 2020
Hong Kong	10 769	11 318
Tokyo, Japan	9 317	9 207
Shanghai, China	5 222	5 363
Yokohama, Japan	5 168	5 090
Seoul, Korea Republic	5 107	4 931
Beijing, China	4 599	4 566
Osaka, Japan	4 278	4 254
Singapore	4 210	4 233
Taipei, Taiwan	4 101	3 656
Mumbai, India	3 980	4 403

Asia Highlights

Cities in Taiwan all rose in the rankings this year, as rental markets saw an increase – especially Taipei which climbed 20 places to 29th most expensive location worldwide. 

Quane said “Taiwan was one of the few locations in the APAC region to see significant rises in accommodation costs this year, with the average monthly rental cost in Taipei now standing at USD 4 101 – a rise of over 5% from last year. This growth was a knock-on effect of the nation’s success in mitigating the transmission of the Covid-19 virus, as well as repatriations of staff previously assigned to China and demand for talent in key industries in Taiwan which all resulted in increased demand, meaning that rents were able to stay consistent and even increase in many high-end areas.”

Meanwhile, Singapore fell one spot in the rankings to 26th position globally, as rents fell by an average of over 2%. The average monthly rent in Singapore is now USD 4 210 (SGD 5 747).

“Rent levels in Singapore are always notably stable and this year is no different, with only a slight dip in the rankings. However, this is a reversal of the increase in rental costs seen in 2019 and is likely the result of greater immigration restrictions for workers and other travellers to the city, thereby suppressing demand for all types of accommodation” explained Quane.

The last quarter of 2021 was marked by notable signs of border reopening. In countries that have accelerated their reopening such as Singapore, the number of international visitors is quickly increasing on the back of multiple travel lanes.

Thailand also welcomed foreign tourists in November, but Omicron has pushed authorities to remain cautious and suspend the ‘Test & Go’ scheme. Further south in Australia, the end of the year was marked by an easing of restrictions after almost two years of strict measures.

Domestic tourism remained key demand driver

More generally, domestic tourism remained the key demand driver across Asia Pacific, surpassing pre-COVID-19 levels in some destinations.

Limited new supply amid continuous tight measures

Hotel openings continued to be limited towards the end of 2021, with most of them postponed to 2022 and beyond amid construction delays and continued bordure closure. Conversely, the two main markets in China counted the highest number of new rooms entering the market in Asia Pacific, underscoring the strong confidence in the country’s domestic tourism. In Singapore, openings in 2021 were led by rebranding or renovation works.

Staycations as the main driver

The region was marked by downwards pressure on performance on the back of numerous Omicron outbreaks which led to tighter measures. As markets in Asia Pacific were driven by the domestic tourism at the end of 2021, hotel occupancy continued to improve with strong demand for staycations. However, this improvement was not enough to offset the decrease in ADR, thus leading to declining RevPAR on average.

Gradual reopening regionally and globally to boost hotel performance

With major easing of border restrictions, the main destinations in Asia Pacific should record a notable improvement in hotel performance starting the first half of 2022 amid the return of international travellers. However, the recovery in the first quarter 2022 is expected to be domestic-led.

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