Thai condo market dominated by Chinese and Russian investors

Foreign buyers from China and Russia dominated the Thai condominium market in 2023, as per data from the Real Estate Information Center (REIC). The report disclosed a total of 14,449 units, valued at 73.2 billion baht, were purchased by international buyers, marking a 25% increase from 2022.

Chinese investors led the way, acquiring 6,614 units, approximately 46% of the total sales, amounting to 34.1 billion baht. Russian buyers followed, purchasing 1,260 units. Myanmar and the United States buyers trailed in the third and fourth positions, respectively.

Interestingly, the highest average price per unit, at 6.6 million baht, was paid by buyers from Myanmar. The majority of these sales, about 41%, were recorded in Chon Buri, known for the resort city of Pattaya and numerous industrial estates.

Bangkok’s condominium sales to foreigners accounted for 38% of the total, with units priced below 3 billion baht making up nearly half of these purchases. It is noteworthy that in 2023, condominiums bought by foreign investors constituted approximately 13.4% of all transferred condos. The law stipulates that foreigners can own up to 49% of a condominium development’s usable space.

The surge in sales was attributed to temporary visa waivers granted to tourists from China and other countries last year, along with a permanent bilateral waiver with Beijing from March 1, the REIC reported. Geopolitical conflicts such as Russia’s war with Ukraine and political instability in Myanmar were also factors.

REIC acting director Wichai Wiratkaphan believes the foreign condominium purchases are improving and returning to normal.

Foreign condominium sales in 2023 were 13% higher than the 12,798 units sold for a total of 50.6 billion baht in 2019, as per REIC data.

Tourism, a sector directly responsible for about 12% of the country’s gross domestic product and nearly a fifth of jobs, is viewed by Prime Minister Srettha Thavisin as a key driver to boost the country’s sluggish economic growth. Along this line, last year, the government waived visas for travellers from China, Russia, Kazakhstan, India and Taiwan. Additionally, airlines were instructed to add more routes and streamline airport operations to reduce waiting times.

The Tourism Authority of Thailand anticipates a further recovery to between 35 million and 40 million visitors this year, including 8.2 million from China. This projection brings the country closer to the record of almost 40 million visitors set in 2019, before the pandemic, reported Bangkok Post.