SC touts extending foreign leaseholds

SET-listed developer envisages extending leasehold ownership to at least 60 years, which could help attract international buyers, writes Kanana Katharangsiporn

- Kanana Katharangsiporn

With the residential market expected to contract for at least three years, Thailand should restore foreign tourist confidence to drive economic growth and extend leasehold ownership to at least 60 years to attract international buyers, according to SET-listed developer SC Asset Corporation.

Nuttaphong Kunakornwong, chief executive of SC, said the global economic outlook remains weak, with tourism emerging as one of Thailand's few reliable growth drivers.

However, unlocking the full potential of foreign demand will require targeted government policies.

"Bangkok remains one of the most liveable cities in the world. If we provide the right level of security and assurance for foreign buyers, especially through extended leasehold terms, it could be a game-changer for Thailand's property sector," he said.

Attracting foreign demand is critical, especially as Thailand faces a prolonged period of low population growth, projected to dip below zero within a decade, said Mr Nuttaphong.

"Extending leasehold terms to 60 years or more would offer international investors the confidence they need. Whether it's 60, 90 or even 99 years, the exact terms can be debated. But it must exceed 60 to be meaningful," he said.