Visitors check out property deals at a House and Condo Show held at Queen Sirikit National Convention Center. Varuth Hirunyatheb

The proposal to allow foreigners to purchase real estate in Thailand will help stimulate the local economy, says Deputy Finance Minister Julapun Amornvivat.

Mr Julapun defended the idea, insisting it is not "selling out" the country, as claimed by some critics.

"If the government increases condo quotas for foreign buyers and extends the leasing period on land for foreigners, the territory of Thailand still remains intact," he said.

Regarding whether these changes would affect local property prices, Mr Julapun said the problem is not with prices, but rather people's inability to access loans from financial institutions.

The government ordered relevant agencies to consider how this proposal would affect the Thai economy and present their conclusions, he said.

Recent administration policies aim to stimulate investment, increase employment and establish Thailand as a global hub that can attract foreign tourists.

The government wants to lure skilled foreigners to reside in the country, said Mr Julapun.

Currently foreigners can own up to 49% of the units in any condo.

The proposal suggests increasing their ownership quota to 75%, though their voting rights at any condo would remain at 49%.

Regarding land lease rights, the current law permits leases for up to 30 years, while in some special cases, leases can extend up to 50 years and be renewed for a total of 99 years.

The proposal suggests allowing a single lease for 99 years.

Local real estate executives previously voiced their support for the proposal to extend land leases to 99 years, saying the change would attract more foreign investment.

Issara Boonyoung, honorary president of the Housing Business Association, said seven real estate organisations recently met with officials from the Department of Lands and other agencies to discuss changes that would encourage foreigners to purchase real estate.

Mr Issara suggested new foreign ownership rules be applied selectively in areas popular with foreigners, such as Bangkok, Phuket and Pattaya.

This policy was previously implemented after the 1997 financial crisis to stimulate the market, he said.