Thai condo market faces turbulence with Myanmar buyers blocked

The Thai condominium market is bracing for a storm as Myanmar’s crackdown on property purchases by its citizens threatens to halt a major influx of foreign investment.

According to the Thai Condominium Association, the clampdown could significantly impact condo transfers during the second and third quarters of this year.

Prasert Taedullayasatit, president of the association, revealed that Thai condo units valued at over 1 billion baht were prevented from being transferred to Myanmar buyers in April and May following the regime’s stringent measures.

“This will definitely affect developers’ condo transfers in the upcoming quarters. Myanmar buyers, who are an emerging market among foreign buyers, will face increased difficulties in purchasing Thai condos.”

With the once-dominant Chinese market slowing, the importance of Myanmar buyers has surged. Prasert noted that Myanmar nationals have become a vital segment, consistently growing in both number and value of condo transfers, unlike the dwindling local market.

The Real Estate Information Center (REIC) reported a significant rise in condo transfers to Myanmar nationals starting in 2022. That year, they ranked sixth for units purchased and third for the value of transfers, buying 349 units worth 2.55 billion baht. Their ranking improved to fourth in 2023, with 564 units worth 3.7 billion baht.

The trend continued this year, with Myanmar buyers leaping to the second spot in the first quarter, purchasing 392 units worth 2.2 billion baht, surpassing Russian buyers. The proportion of condo transfers to Myanmar nationals jumped from 3 to 4% in 2022 to 2023 to 10% by number and 12% by value this year.

Myanmar buyers

While Chinese buyers have dominated the market since 2018, their share fell below half last year and continued to decline this year. In Greater Bangkok, a hotspot for Myanmar buyers, condo transfers skyrocketed by 446% year-on-year in the first quarter of 2024, marking the highest increase among all foreign buyers.

Vichai Viratkapan, acting director-general of the REIC stated that the Myanmar buyer market has been on the rise since the political turmoil in 2021.

“Some developers reported that half of their foreign condo transfers were to Myanmar buyers.”

In response to the crackdown, Prasert advised condo developers to shift their focus to holding expos in Thailand and promoting off-plan units, giving buyers time to arrange foreign exchange transactions, reported Bangkok Post.

Surachet Kongcheep, managing director of Property DNA Co., added that while those booking off-plan units might not be affected, new buyers might need to explore alternative methods for money transfers, or even consider cancellations if necessary.