Foreign buyers fuel 200% surge in Thai luxury property sales

A surge in foreign interest in luxury property in Thailand has been observed since international tourists began returning in the latter half of 2022, according to property consultancy CBRE.

Sales transactions through CBRE have risen by over 200%, indicating a clear trend. In response, developers are preparing to launch new luxury and super-luxury residential projects in 2023, with a focus on single houses.

CBRE Thailand represents approximately 30 leading residential projects with a total project value surpassing 40 billion baht, stated Artitaya Kasemlawan, head of residential sales projects. Among these projects, 58% are luxury and super-luxury housing, 40% are luxury condominiums, and the remaining 2% are villa developments.

The majority of projects slated for launch this year are single-house developments, which continue to be in high demand. Examples of such projects include Nirvana Collection Krungthep Kreetha, Arch Sukhumvit 39, Vi Ari, Hyde Park Garden, and Mayfield Pinklao.

In 2022, foreign travellers returned to Thailand in significant numbers, with 11.2 million arrivals. Among the projects CBRE represents, 89% were purchased by Thai buyers and 11% by foreigners from 2022 to early 2023, said Artitaya.

“The majority of foreign buyers looking for condominiums and houses come from Asia, particularly China, Hong Kong, Taiwan, Myanmar, Singapore and Japan. Most of the clients interested in buying villas come from Europe, such as Russia, the UK, France and Germany.”

Additionally, sales of resort properties through CBRE in 2022 increased by 24% compared to the previous year, said Prakaipeth Meechoosarn, head of Phuket property sales.

“The most popular residential properties are villas or resort homes, which posted a sales increase of 69%.”

CBRE anticipates that the tourism and long-stay market in Thailand will become more active this year from the second through the fourth quarter, which will continue to positively impact demand for residences as second homes and investments.