New enforcement measures in Thailand are unlikely to significantly impact the appetite for foreign property purchases, particularly in desirable resort destinations. Despite concerns among some observers regarding increased regulatory scrutiny, analysis indicates that foreign demand for properties in areas like Phuket and Samui remains robust.
Enforcement Focuses on Illegal Work, Not Expats
Recent government campaigns have intensified checks on individuals working in Thailand illegally. However, experts suggest these measures are primarily targeting non-compliance with work regulations rather than impacting foreign residents living in villas. Kashif Ansari, co-founder and group chief executive of Juwai IQI, stated, “The crackdown seems to focus on people working illegally in Thailand rather than expats living in villas.” He emphasized that the fundamental rules for property ownership have not changed, and the current actions represent an escalation of enforcement. “The rules haven’t changed. They’re just stepping up enforcement. Anyone who has followed the law will have no problem,” Ansari added.
Foreign buyers generally welcome enhanced transparency and legal certainty, viewing it as a protective measure for their long-term investments. “Ultimately, buyers like to operate in well-regulated, transparent markets where their investment is protected. We find Thailand’s focus on compliance reassuring,” Ansari commented.
Buyers Seek Clarity on Ownership Structures
While the enforcement drive has not deterred foreign buyers, it has led to an increase in inquiries regarding property ownership structures. “Our agents are getting more questions about legal arrangements than they did in the past,” Ansari noted. “Some buyers want to clearly understand in advance how it will work, just to make sure they’re not getting into trouble. We think that’s a good thing.” The company has not observed any instances of foreign buyers withdrawing from pending purchases or forfeiting deposits due to these measures. “Buyers work with good lawyers and agents and make sure they’re doing things legally,” he explained. Similarly, there has been no rush of existing foreign villa owners divesting assets in anticipation of potential audits.
Strong Demand in Luxury Resort Markets
Estimates suggest that foreign participation continues to dominate Thailand’s luxury villa market. While official figures for foreign villa ownership are unavailable due to restrictions on foreigners holding land directly and the non-tracking of long-term leases by nationality, analysis provides a clear picture. In Phuket, it is estimated that approximately three out of every five property transactions involve a foreign buyer or lessee. Demand is even more pronounced in Samui and Phangan, where over nine out of every ten villa buyers are reportedly foreign. Juwai IQI believes that between 2,400 and 3,000 villas in Phuket, and a comparable number across Samui and Phangan, are ultimately owned or leased by foreigners. These figures pertain primarily to the luxury resort villa segment, with conventional housing remaining predominantly Thai-owned.
Chinese Buyers Remain Active
Thailand continues to be a top choice for overseas property investment among Chinese buyers. Enquiry data for the first quarter of 2026 shows Thailand as the second most popular global destination for Chinese property seekers. “Chinese buyers rank Thailand as their second-most popular destination globally,” Ansari stated. Over half of these enquiries were for properties valued at US$750,000 or below, while 27.5% targeted properties exceeding $2 million. “Nine in 10 Chinese buyers say their purchases are both for their own use and for investment,” he added.
Within Thailand, Bangkok remains the leading destination, followed by Phuket, Chiang Mai, Pattaya, and Hua Hin. The company has not identified any significant capital outflow from Thailand to competing markets like Malaysia. “Malaysia is certainly an attractive market, but we haven’t noted any shift in buyers from Thailand to Malaysia, or the other way around,” Ansari commented.
Navigating Legal Property Avenues
Foreign buyers currently have several legal avenues for property acquisition: purchasing condominium units under freehold ownership, acquiring villas structured within condominium ownership frameworks, or entering into long-term leasehold agreements. Ansari cautioned against misconceptions regarding lease extensions, stating, “No buyer should believe that their lease can be automatically extended for 90 years.” He also strongly advised against nominee arrangements, where Thai shareholders hold land under their name for foreign control, as these are precisely what authorities are currently enforcing against.
Discussions surrounding potential reforms to increase the foreign ownership quota in condominiums from 49% to 75% and extend leasehold terms from 30 to 99 years could further enhance Thailand’s market competitiveness. “My own view is that some version of these changes could arrive in the next 12 to 24 months,” Ansari projected.
Phuket’s Resilient Market Appeal
Market sentiment in Phuket remains positive despite the increased regulatory attention. Nasupha Suwansri, vice-president of IQI Phuket, reported sustained strong demand for luxury villas across the island. “Foreign buyers don’t come to Phuket expecting to break the law when they buy a home. They want to follow the rules, and therefore the crackdown isn’t worrying them,” she said.
Suwansri highlighted Phuket’s evolution beyond a tourist hub into a truly international residential destination, blending Thai culture with global communities. Factors such as international schools, quality healthcare, wellness facilities, marinas, golf courses, and direct international flight connectivity are significant draws for foreign families. Demand is particularly robust for pool villas priced between 15-30 million baht near international schools. Investors and second-home buyers typically target properties in the 30-70 million baht range in areas like Bang Tao, Layan, Laguna, Kamala, and Rawai.
“The crackdown is not stopping serious buyers,” Suwansri concluded. “It is making them ask better questions and work more carefully with agents and lawyers. Foreign buyers want to follow the rules, and Phuket remains one of the strongest lifestyle and investment destinations in Asia.”
