LAOS investors interested in Thai Real Estate

Construction News Laos

About one-third of the leading business investors in the neighbouring Lao People’s Democratic Republic (Lao PDR) are interested in buying properties in Thailand, according to a survey by Thailand’s Agency for Real Estate Affairs (AREA).

AREA president Sopon Pornchokchai said the survey was conducted among 150 leading Lao businessmen who attended a seminar on property investment.

According to the survey, an overwhelming majority — 87 per cent — of the businessmen polled agreed that the Lao economy is more robust today compared to the same period last year, while the remainder believed that their country’s economy this year is only slightly better.

About a quarter of the Lao business attendees said they are interested in buying real estate in Thailand, one-fifth said they had no interest, and the rest have only fair interest.

Almost half of the Lao investors (43 per cent) would choose to buy a condominium in Thailand, for Thai law legally allows foreigners to buy this type of real estate, while land and houses are the second option.

The resort town of Pattaya in Bangkok‘s eastern shore is where the Lao would most like to invest, counting as 37 per cent of the investors, followed by 31 per cent of them wanting to purchase real estate in the capital Bangkok. Udon Thani and Nong Khai in the northeast follow suit with 23 and 9 per cent of the buyers respectively.

Meanwhile, 47 per cent of the Lao businessmen viewed that investment should be focused on land for further development, whereas investments in condominiums, shopping malls, and industrial estate should follow.

Currently, there are no condominiums available in the Lao PDR.

These businessmen added their government should have a clear policy on foreign investment while providing opportunities for foreigners to invest more in the country. It should also lower fees for land transfer, which is currently as high as 15-40 per cent, and should develop basic infrastructure such as roads, as well as create bigger loan system or a money market for housing systems.

Lao and Thailand‘s other neighbours are Thailand‘s main target to attract foreign buyers in the areas of Bangkok, tourist towns and cities along the borders, according to Mr Sopon.


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