Thailand eyes forced sales in foreign property crackdown

A view of Bangkok’s skyline amid concerns over property purchases by foreigners in popular areas, despite Thailand’s ban on foreign land ownership. (EPA Images pic) BANGKOK: Thailand's government said on Monday it could force the sale of up to 2,300 plots of land worth more than US$400 million as part of a crackdown on property held unlawfully by foreigners.

Prime Minister Anutin Charnvirakul called in a speech for tougher action against the use of Thai proxies to circumvent a ban on non-Thais owning land.

The government has identified 2,360 plots worth 14.01 billion baht (US$417 million) owned through 1,397 proxies, Department of Lands Director Somchai Leelanoi said.

They cover an area totalling 5,467 rai -- around 875 hectares -- across the country.

"The department will expedite the forced sale of land in cases deemed illegal and will proceed with both civil and criminal legal action," the government said in a statement.

Tourism accounted for 12.6% of Thailand's gross domestic product last year, and is forecast to hit almost 20%t by 2036, according to the World Travel and Tourism Council.

However, the industry has come under growing public scrutiny. There have been protests in recent months about bad behaviour by visitors, as well as concerns that foreigners are buying up property in certain hotspots, including Phuket.

Thai law bars foreign nationals or companies from owning land within the kingdom, except those with prior approval from the country's Board of Investment.

However, a limited company can purchase land as long as the majority of shares are held by a Thai national.

"This investigation must not stop at merely the names of title deed holders or company shareholders; it must dig deeper to identify the true controlling figures, behind-the-scenes decision-makers, and ultimate beneficial owners," Anutin said.

"Thailand remains open and welcoming to honest, transparent foreign investments that respect Thai law and abide by the rights granted under investment promotion regulations," he said.