Thailand’s real estate market is experiencing a surge in activity as investors use cryptocurrency to purchase property, according to a new report in The Nation Thailand.
Boon Yongsakul, chairman of Boat Pattana, a hotel operator and property developer in Phuket, said digital assets enabled investors, particularly those aged 20-30, to generate enough income to buy up to THB300 million ($9 million) properties. “Our customer bought two houses by using cryptocurrency – the first house worth THB12 million and the second costing THB20 million,” Yongsakul said. “We accept cryptocurrency because they are the future and we cannot stop it.”
Amornchai Saehuang, chief operating officer of VIP Property Development in Phuket, also told The Nation that Chinese investors are using cryptocurrency to buy tangible properties in an effort to cope with volatility.
A Chinese person recently bought a pool villa worth THB28 million using cryptocurrency,” he said. “Cryptocurrency investors are the new wealthy who are able to purchase products and services at high prices. These investors will be the main factor in any future economy and this needs close monitoring. Amornchai Saehuang, COO, VIP Property Development in Phuket
Thai Chamber of Commerce Housing Business Association president Issara Boonyang added that cryptocurrency is an issue that everyone should be aware of as it is an inevitable global trend.
Cryptocurrencies will play an important role in the real estate market in the future as investors will be able to use their real assets to issue cryptocurrencies instead of debentures or borrowing cash from financial institutions,” Boonyang said. “This will become popular as new generations prefer investment that provides good and fast returns rather than deposits because the interest rate is low. Issara Boonyang, President, Thai Chamber of Commerce Housing Business Association
This trend of using cryptocurrency to purchase property in Thailand is part of a larger movement that is making the country’s real estate market more attractive and more liquid for investors. As cryptocurrency becomes more mainstream and its value becomes more stable, it is increasingly being used to fund purchases of tangible assets such as real estate. This is especially true for younger investors who may be more comfortable with the use of digital assets and who may be seeking alternative investments that offer the potential for good and fast returns.
The influx of cryptocurrency into the Thai real estate market is another positive factor as the country’s real estate market is expected to see a major rebound in 2023. The successful reopening of Thailand’s borders and the resulting influx of foreign visitors is driving the recovery of the country’s tourism industry, which is expected to increase demand for both residential and commercial properties. This is particularly true for the hotel and hospitality sectors, which are poised to benefit from the gradual recovery of international tourism driven by pent-up demand.
The use of cryptocurrency in the Thai real estate market is also taking place against the backdrop of a declining stock of second-hand residential units in the country. The stock of second-hand residential units in Thailand declined in the third quarter of 2022. With reduced supply, demand for new properties is expected to increase and drive up prices. This trend, combined with the increased use of cryptocurrency in the market, could lead to further growth in the Thai real estate market in the coming years.
The cryptocurrency influx into the Thailand real estate market is a positive development for investors in Thai real estate. It should result in more liquidity and better returns for investors. It’s another indicator that the Thai real estate market is well positioned for growth in the coming years.
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