The luxury real estate market in Thailand is witnessing an unprecedented influx of foreign buyers, as reported by CBRE, a global leader in property consultancy. This surge in demand for luxury residences, including condominiums, houses, and villas in prime locations, has been observed since the return of international tourists in the latter half of 2022. CBRE’s sales transactions reflect this trend, with a reported increase of 200-300%.
The demand is predominantly from Asia, with China, Hong Kong, Taiwan, Myanmar, Singapore, and Japan leading the pack. However, interest from Europe, particularly Russia, the United Kingdom, France, and Germany, is also noteworthy, especially for villas. To cater to this growing demand, developers are preparing to launch new luxury and super-luxury residential projects in 2023, focusing primarily on single houses.
Sales performance in 2022 saw a 383% increase in foreign purchases of condominium projects and a 233% increase in house purchases compared to 2021. The majority of these foreign buyers were residents of Thailand.
CBRE’s analysis of purchasing behavior reveals that most foreign buyers possess high purchasing power. They are primarily interested in downtown condominiums in Bangkok’s business areas such as Silom, Sathorn, Lumpini, Sukhumvit, Pathumwan, and the riverside. For housing projects, foreigners prefer locations in eastern Bangkok, downtown, and the eastern suburbs as the boom in Bankok’s luxury market, especially seen in condos, continues and it becomes an increasing destination for luxury property investors.
Chinese buyers, in particular, are at the forefront of foreign buyers in Thailand’s real estate market with many affluent Chinese’ moving to Thailand for a better quality of life. They typically seek luxury condominiums with 1-2 bedrooms in the price range of THB 15-30 million in the Silom and Sathorn areas, primarily for personal use.
CBRE has also noted an interesting trend among Myanmar buyers. Many of them purchased residences with CBRE in the past year, priced between THB 5 to over 100 million. Most Myanmar buyers are interested in luxury 2-bedroom condominiums and 4-bedroom houses in the eastern and central Bangkok areas.
Focusing on the resort region of Phuket, the overall sales performance of resort properties through CBRE in 2022 increased by 24% compared to the previous year, with a 69% sales increase in villas or resort homes.
The foreign buyer activity in the Phuket residential market has significantly increased, with a 93% increase in foreign buyers investing in Phuket condominiums. These buyers are predominantly from Russia, Canada, Italy, France, China, and Britain, with many wealthy Russians seeking new homes in the Phuket region due to the Russia-Ukraine conflict.
Meanwhile, foreign buyers are becoming clued-in to Koh Samui’s exceptionally stable real estate investment market making it a more attractive target for luxury buyers internationally as speculation that White Lotus Season 3 will be filmed on the island abound.
Luxury villas in Thailand are increasingly popular with foreign buyers according to a new CBRE report
Looking ahead, CBRE anticipates the tourism and long-stay market in Thailand to become even more active from the second quarter to the fourth quarter of 2023. This is expected to positively impact the demand for residences as second homes and investments, including in Bangkok and leading resort destinations like Phuket, and boost the rental market.
As the luxury real estate market in Bangkok and other prime locations in Thailand continues to thrive, international interest is expected to further fuel this exciting boom. The current trends indicate a promising outlook for Thailand’s real estate sector, offering potential opportunities for foreign investors seeking attractive investment prospects and luxury residences in the country.
Get more information on the surge in foreign demand for luxury residences in Thailand from the original CBRE release here.
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