Thai Supreme Court Strikes Down "Automatic" Long Term Lease Renewals

In a recently published case (4655/2566) which was decided in 2023, the Supreme Court of Thailand examined a renewal clause in a long term lease contract and its compatibility with Section 540 of the Civil and Commercial Code of Thailand, which prohibits lease terms that exceed 30 years. The decision in this case was that the renewal provisions are void.
This judgment has received attention in various publications and social media sites, some of which portray it as a reversal of previous decisions on lease terms and renewals under Thai law. This has understandably caused quite a lot of unrest amongst foreign lessees in Thailand and parties marketing properties (including condominium units) with long term leases to foreign buyers. Should lessees, developers and potential buyers really be that concerned?