Thai condo market surge fuelled by visa-free policy and Chinese

The Thai condominium market is experiencing a surge in activity, largely due to a permanent visa-free policy for Chinese nationals, which has led to a significant increase in property purchases by foreigners.

In the first three quarters of the year 2023, foreign buyers transferred ownership of 10,703 units valued at 52,259 million baht (US$1.46 million). This momentum is expected to continue, with projections suggesting that the year-end figures will likely mirror those of the previous year, where transactions totalled 59,260 million baht (US$1.65 million).

The visa-free policy, which has been extended to tourists from Kazakhstan, India, and Taiwan temporarily, is anticipated to positively influence the Thai condominium market, as it facilitates easier travel.

Foreigners often purchase condos as a second home, close to their children’s schools, with the option to rent them out when not in use. Chinese buyers have been particularly active, accounting for nearly 50% of foreign transactions in the nine months of 2023, with 4,991 units transferred at a value of 24,740 million baht (US$691,602).

According to Wichai Wiratkaphan, the Acting Director of the Real Estate Information Center (REIC), the foreign clientele has become an essential source of purchasing power in 2024, compensating for weaker domestic demand and reduced purchasing power. He revealed that the transfers of condominium ownership by foreigners nationwide during the first three quarters of the year 2023 have been robust.

The permanent visa-free policy between Thailand and China, not only benefits the tourism industry but also invigorates the real estate market, including both pool villas and condominiums, especially in tourist destinations like Phuket.

Sansiri, a leading property development company, is continuing its aggressive expansion into the foreign market, aiming for a sales target of 7,000 million baht (US$195,683) in 2024, which represents a 15% increase from the 6,100 million baht (US$170,524) achieved in 2023.

The company’s main clientele consists of Chinese and Russian buyers, and there is an expectation that Chinese customers will return in greater numbers within the year, reported KhaoSod.

Prasert Taedullayasatit, Chief Real Estate Officer at Ananda Development, expressed that positive factors for the real estate market in 2024 include the steady demand from foreigners, particularly for condominiums. This is attributed to the shrinking purchasing power domestically.

The primary foreign demand comes from groups in Hong Kong, Taiwan, and Myanmar. The government’s policy for permanent visa-free travel between Thailand and China is hailed as a positive development, which has increased tourism and consequently, the demand for residential properties.