1.3 million empty residential units, including houses and condominium units, worth a total of 2.6 trillion baht in Thailand
According to the Agency for Real Estate Affairs (AREA), there are now 1.3 million empty residential units, including houses and condominium units, worth a total of 2.6 trillion baht in Thailand.
AREA’s president, Sopon Pornchokchai, said one of the reasons for this situation is that Thailand has entered an aging society with a low birthrate, yet the supply of new residential units has been increasing.
He said these 1.3 million residential units have already been built, but no one is occupying them, or they have moved in and out already.
These residential units include single houses, semi-detached houses, townhouses, row houses, and condominium units.
He added that the total number of registered residential units is currently around 27.71 million units, and 1.31 million units, or 4.7% of them, have no occupants.
Sopon suggests that the government reevaluate the value of these properties according to their condition at market prices.
For example, if the average price per unit is 2 million baht, then a tax of 2% per year, or 40,000 baht, should be collected to encourage owners to use or sell them to increase supply in the market for potential buyers.
He added that when more supply enters the market, house prices will not rise excessively, so people’s ability to buy houses will not be affected.
He also proposed that if any house remains inactive without paying taxes for three consecutive years, the government should auction it to recover the overdue taxes.
If a buyer cannot be found at that time, the proceeds from the sale should be deposited in a financial institution, awaiting the owner’s, if any, claim in the future. Vacant houses are an important national resource that should be utilized to their fullest potential for the benefit of the entire society, he added.
Thai Enquirer
