PROPERTY FOR EXPAT RETIREES IN THAILAND FACE GROWING REGIONAL COMPETETION

Thailand faces growing regional competition in the retirees as second home purchasers market, will need to be "involved in improving a better package of property ownership, domestic financing for foreigners and visa regulations," warned James Pitchon, executive director of CB Richard Ellis Thailand (CBRE), according to Bangkok post breaking news.

Thailand has been actively trying to attract foreign retirees for years, granted 12,092 special retirement visas to foreigners in the first seven months of 2006.

Although Thailand is facing growing competition from their neighbours, but Thailand still stands in a very strong position competing to attract RSH (Retirees as Second Home) purchasers against other countries in South-East Asia," said Pitchon.

The rise in property values in Europe and the US have made retirees to sell their homes and move abroad where it is cheaper countries and sunnier climate in South-East Asia like Thailand which has two coastlines and a welcome hospitality, including advanced health care, safety in life, adequate infrastructure, beautiful vacations has become the major destination for buying second homes.

But he cautioned that Thailand's growing market for retirees faces obstacles, such as restrictions on property ownership, financial facilitation and visa regulations.

Compared with Malaysia, where there is no restriction on property ownership, Thailand does not allow foreigners to own land and grants only 30-year leases on land rental. For the ownership of high-rises, it allows 49 per cent freehold of foreigners for condominiums.

Malaysia allows foreign sole ownership of land with houses, eligibility for domestic loans to buy the property and a 10-year-visa permit.

Singapore also binds no restriction on freehold condominiums. Although foreigners cannot buy land, the country provides 99-year leases on Sentosa Cove, the only land development specifically for foreigners. China allows 70-year leases for land tenants while Vietnam allows 50-year leases.