The share price of property developers edged higher at the opening bell on Wednesday in response to the positive sentiment from the new measure allowing foreigners to buy land in Thailand.
At the opening session on October 26, 2022, the share price of SC Asset Corporation Public Company Limited (SET: SC) rose 2.20% to THB3.72 at the open.
Meanwhile, Land and Houses Public Company Limited (SET: LH) gained 1.66% to THB9.20 per share, and Sansiri Public Company Limited (SET: SIRI) increased 2.34% to THB1.31 per share.
However, Finansia Syrus Securities (FSS) wrote in a note, citing that the cabinet approved the proposal to let high-potential foreigners buy no more than one rai of land if they invest over Bt40mn in Thailand and maintain it for more than three years. Although it may provide a short-term catalyst for high-end developers of low-rise units, such as SC, LH, and SIRI, FSS had a neutral view of the decision. It will have insignificant impacts on the market since it is just an amendment to the existing legislation passed in 2542 by shortening the investment period from five to three years. The data shows that only eight foreigners own land of no more than one rai after passing the legislation in 2542.