Phuket –
Phuket’s real estate sector is undergoing a transformation following intensified government efforts to crack down on nominee ownership. While the stringent enforcement has created short-term disruptions, industry leaders believe it will ultimately lead to a healthier and more sustainable investment environment.
According to Methapong Upatising, President of the Phuket Real Estate Association, the crackdown on Thai nominees holding property on behalf of foreign investors is reshaping investment strategies. In response to the enforcement, foreign investors are increasingly opting for long-term lease agreements instead of circumventing ownership restrictions.
“In the current legal framework, foreigners are prohibited from holding land titles directly. Many have relied on Thai nominees to bypass this restriction, but with stricter regulations now in place, investors are shifting towards long-term leasing. A 30-year lease, with an option to extend for another 30 years, is now seen as a viable solution,” Methapong stated.
Industry stakeholders argue that the existing 30-year lease period may be insufficient for attracting high-value foreign investors. Countries like Singapore and Vietnam allow foreigners to lease land for up to 50 or even 99 years, making Thailand’s restrictions comparatively limiting. Efforts to extend lease terms to 50 years were proposed during Prime Minister Srettha Thavisin’s tenure but have yet to be implemented.
Despite the immediate disruptions, market indicators suggest resilience in Phuket’s property sector. Data from the Real Estate Information Center reveals that property transfers in the first quarter of 2025 increased by 9%, although high-value transactions exceeding seven million baht saw a decline. The steady demand for condominiums among both Thai and foreign buyers continues to support market growth.
Looking ahead, real estate experts believe that clearer regulations and extended leasing options could further legitimize foreign investment, reducing reliance on nominee arrangements and fostering a more transparent property market.
