Chinese move their purchase power away from Bangkok condo market

Chinese condo buyers are veering their purchase power away from the Bangkok property market citing the strong Thai currency, overpricing and a supply glut.

  • 2015 – 5.8 Yuan to the Thai Baht
  • 2019 – 4.4 Yuan to the Thai Baht

The rise of the baht and the weakening of the Chinese Yuan over the past four years, have culminated in a 25% softening in Chinese investment power in the Thai property market (chart from xe.com)

Property consultants say that Chinese buyers are now containing their investment risk by buying into the lower-end 2-6 million baht condo market instead of the 5-10 million baht condos they were previously purchasing.

At the same time the annual returns for Bangkok condominiums is reported to have dropped from 6-7% five years ago to only 3-4% in some locations in the current market.

Speaking to the Bangkok Post, Simon Lee, President of property brokerage Angel Real Estate Consultancy, says overall sales volume of Bangkok condos bought by Chinese buyers will shrink by half in 2019.

He also notes that the current Thai government crackdown on investors renting out condos on daily or weekly leases, has scared a lot of new investment into the sector away  as the ‘law’ appears to be applied in a haphazard manner.

The Chinese investors are also expressing disappointment when they buy into a development at one cost, only to find that locals pick up the balance of the stock at a lower price as the developers clears the stock.

Bangkok’s soaring land prices, which should see the value of condos rise, is being balanced out with the sheer glut of stock available, pushing down values. Rental returns are also being pushed down by the volume of stock available to the rental market.

SOURCE: Bangkok Post

Here’s another report about signs of weakness emerging in the Bangkok condo market from The Thaiger.

The Thaiger

If you have story ideas, a restaurant to review, an event to cover or an issue to discuss, contact The Thaiger editorial staff.

Share
Published by
The Thaiger

Recent News

Top 10 most boring news stories

In the media we have 'slow news days'. These days are when you scroll through countless feeds and articles to…

2 hours ago

PM defends the 80 billion baht munition spend

PHOTO: The Nation Speaking to the House of Representatives’ budget debate for the 2020 financial year yesterday, PM and Minister…

3 hours ago

Thalang Police arrest local Phuket drug dealer with amphetamine pills

PHOTOS: เหยี่ยวข่าว ภูเก็ต Newshawk Phuket Thalang Police have arrested a local drug dealer with more than 192 amphetamine pills. Thalang…

3 hours ago

Another illegal concrete structure has to be removed from north east national park

PHOTO: ชมรมstrong-จิตพอเพียงต้านทุจริต จังหวัดนครศรีธรรมราช A website run by anti-corruption activists has posted a picture of a concrete platform built into a…

3 hours ago

Police arrest con man who left bride to pay for 3.5 million baht wedding

PHOTO: Immigration Police A man who conned his bride into believing he was a billionaire, then absconded after their wedding…

4 hours ago

11 ตัวจริง คริสตัล พาเลซ พบ แมนฯ ซิตี้ – พร้อมช่องทางรับชม

11 ตัวจริง คริสตัล พาเลซ พบ แมนฯ ซิตี้ - พร้อมช่องทางรับชม : พรีเมียร์ลีก อังกฤษ  11 ตัวจริงแมนซิ ดูบอลแมนซิตี้คืนนี้ ลิงค์ดูบอลแมนซิตี้ล่าสุด คริสตัล พาเลซ พบ แมนซิตี้…

13 hours ago