The return of foreign buyers is proving to be a significant driver of growth in Thailand’s property market. As the country’s tourism sector rebounds, foreign investors, particularly from China, are showing increased interest in Thai real estate.
This trend is not only boosting the property sector but also contributing to the overall economic recovery in Thailand.
Foreign Buyers Driving Growth in Thailand’s Property Market
According to a recent report from Thai PBS World, the return of foreign buyers is playing a crucial role in the growth of Thailand’s property sector. The report highlights that foreign buyers, especially from China, are driving the property market, with a significant increase in demand for residential properties.
The return of foreign buyers is closely linked to the resurgence of Thailand’s tourism sector. In December 2022, Thailand welcomed 2.24 million foreign tourists, a significant increase from July 2022, when only 1.17 million tourists arrived. The Tourism Authority of Thailand predicts that foreign tourist arrivals will exceed 2 million in January 2023.
A report from Thailand Business News further elaborates on the role of foreign buyers in driving Thailand’s property market.
The report states that the number of condominium transfers by foreigners in Thailand has significantly increased, reflecting a positive recovery trend in the real estate market.
Foreign buyers typically have higher budgets than Thai buyers and prefer to live in main business districts and along the banks of the Chao Phraya River.
The Agency for Real Estate Affairs (AREA) predicts that foreign buyers will account for 15% of total property value or 10% of total units transferred, and purchases will increase to about 18% of total units sold in the next two years.
According to the Real Estate Information Center (REIC), the number of condominium transfers by foreigners nationwide increased by 79.2% to 3,775 units in the first quarter of 2023 compared to the same period last year. The value of these transfers increased by 67.6%.
At the end of the first quarter, there had been 17.1 billion baht in transfers overall.
The Impact on the Property Sector
The influx of foreign buyers is having a positive impact on Thailand’s property sector. The increased demand for residential properties is leading to a surge in property prices, particularly in popular tourist destinations like Bangkok, Phuket, and Chiang Mai. This trend is expected to continue as the tourism sector recovers further.
As we’ve previously discussed, property renovations have surged in Q1 2023, with owners reaping profits from renewed tourism. The return of foreign buyers could further stimulate this trend, as property owners seek to maximize the value of their existing assets.
Chinese investors, in particular, are playing a significant role in driving Thailand’s property market. As we’ve noted before, Chinese investors have been looking to Thailand for better-value property. The return of tourism is further attracting Chinese investors to the Thai property market.
Chiang Mai, in particular, has seen a rising influx of Chinese investors. Five patterns of Chinese investment in the province are hotel and accommodation, restaurant, tour agency, logistics and transportation, and property-related businesses. This trend is expected to continue, with Chiang Mai becoming a ‘second home’ to more and more Chinese descendants.
Meanwhile, Phuket is the preferred destination for Russians.
The return of foreign buyers is a significant factor in the growth of Thailand’s luxury property market. As we’ve highlighted in our previous report on the growing interest from foreign buyers in the luxury market, the luxury real estate market, particularly in Bangkok, is booming.
The city’s luxury real estate market, in particular, has been booming, as evidenced by the luxury real estate boom seen in the Bangkok condo market. The return of foreign buyers, particularly from China, is expected to further fuel this trend.
Bangkok, as the capital city, is likely to benefit significantly from the return of foreign buyers. The city has already been experiencing a surge in land prices, as we’ve highlighted in our previous report on Bangkok’s land prices surge in Q1 2023. The return of foreign buyers could further fuel this trend, making Bangkok an even more attractive investment destination.
Bottom Line
The return of foreign buyers is proving to be a significant driver of growth in Thailand’s property market. As the country’s tourism sector continues to recover, foreign investors, particularly from China, are showing increased interest in Thai real estate. This trend is not only boosting the property sector but also contributing to the overall economic recovery in Thailand. As the demand for residential properties continues to grow, the Thai property market is expected to offer lucrative opportunities for both local and foreign investors.
Comentários