Connect with us


Chinese funds trickle down to Phuket

Legacy Phuket Gazette



PHUKET: The expected rush of Chinese money to overseas safe-haven properties after the recent crash of Shanghai’s stock market is an unlikely surge for this popular resort island, which will continue attracting some of the outflow, but less than what people might expect, Robert Collins, managing director of Savills (Thailand), says.

It is clear that Thailand is not the preferred choice of wealthy Chinese, although some of the money is coming here, but this is not at an institutional level and is more in terms of private, small amounts which go to single homes and condominiums, rather than block sales.

“I think the opportunity is there for the Thai market to understand what the Chinese buyer is looking for, rather than this assumption that they are going to come here because it is a good value and the sun shines,” Mr Collins said.

There is a bigger dynamic driving purchase requirements and it is expected that more mainland Chinese groups will come here to co-develop with Thai companies, just as Charn Issara Development Plc recently did by partnering with China-based Junfa Real Estate Company in developing the 42-rai Baba Beach Club on Phang Nga’s Na Tai Beach.

“There will be a few others.

“I think CP [Charoen Pokphand Group] has a very good mainland connection. The Chinese have a herd mentality and for historical reasons, they are not particularly individualist – like for going overseas; it’s at a very early stage and they are cautious, relatively speaking, in terms of overseas buying. It has bearing on this too, but I think the outlook is pretty good; there is money and there is desire to invest overseas,” Mr Collins noted.

While Chiang Mai captured the imagination of the Chinese with the 2012 smash-hit movie ‘Lost in Thailand’, Mr Collins pointed out that the mainland buyer is not going in for the really big ticket properties in the northern city, with this typically being more in the 10-million-baht price point.

“In Phuket there is a very, very small number of buyers, but it is at a multimillion dollar price point.”

As Greece lurches from one nail-biting crisis to another, with the latest deal leading to the release of an interim loan of 7 billion euros, the world remains fearful of the repercussions of a still-possible Grexit. However, Mr Collins says Thailand, and Phuket in particular, are unlikely to be affected to any great extent.

“From a tourism perspective, I would say there is a secondary impact, but the decline in Russian visitors has had a far greater impact.

“We have gone through a rolling series of crises, of various magnitudes, every seven and half years or so and the markets plow on.”

Turning to the Thai market, Mr Collins said weak consumer confidence, underscored by Kasikorn Research Center’s household Economic Condition Index in June hitting a record 11-month low of 43.8 percent, is affecting the property market to some extent, but the natural trend is for there to always be ebb and flow and peaks and troughs.

“We are in quieter days right now, which is understandable and, generally speaking, good products in good locations will continue to sell,” he said.

“We are certainly not seeing prices come down. There is a large volume of property in the market, but the market follows cycles and we are just in a quieter patch right now. It is completely natural.”

— Nina Suebsukcharoen


Want more Thailand news from the Thaiger family?

📱 Download our app on Android or iOS for instant updates on your mobile
📝️ Join the conversation on Thaiger Talk - discuss news & life in our Thailand forums
📧 Subscribe to our daily email newsletter
👍 Like/Follow us on Facebook
🔔 Subscribe to or Join our YouTube channel for daily video updates


Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Follow Thaiger by email:

Phuket18 mins ago

A Korean restaurant catches fire at a Phuket shopping centre

Best of41 mins ago

Top 10 Provinces to visit in Thailand

Coronavirus (Covid-19)45 mins ago

Pfizer-BioNTech vaccine approved for emergency use in Thailand

Phuket Sandbox July 1st


Thaiger is getting behind local businesses for the restart of tourism in July - up to 50% discounts across all advertising packages in June!

Join the conversation on the Thaiger Talk forums today!
World50 mins ago

1 dead 99 unaccounted for in Florida building collapse

World1 hour ago

Airlines participate in trials of IATA Travel Pass app

Best of1 hour ago

Top 8 Street Foods in Thailand

World1 hour ago

A bed in the sky: Shanghai opens world’s highest luxury hotel

Thailand2 hours ago

GMT Live | Bangkok Covid situation, Klongtoey slums, Sandbox squabbles

Coronavirus (Covid-19)2 hours ago

Covid-19 cluster found at children’s home outside Bangkok

Best of2 hours ago

Top 5 Floating Markets in Bangkok

Phuket3 hours ago

Phuket officials in last-minute scramble to fix sandbox hiccups

Tourism12 hours ago

TAT claims 1,500 travellers arriving in Phuket July 1

Coronavirus (Covid-19)13 hours ago

5 million Moderna vaccines for Thailand, half of expectation

Coronavirus (Covid-19)17 hours ago

Covid-19 round-up for expats 3: Are countries helping Thailand?

Coronavirus (Covid-19)17 hours ago

Covid-19 round-up for expats 2: Will your country give a vaccine?

Thailand4 months ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism4 months ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket4 months ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism4 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand4 months ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism4 months ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand5 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand5 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand5 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand5 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand5 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand5 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand5 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand5 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Thailand6 months ago

Thailand News Today | Southern floods, Face mask fines, Thai Air Asia woes | January 8