Chinese Investors Dominate Thailand’s Property Market
It makes sense for a business traveller to opt for a Sukhumvit 4 star hotel whenever he visits Bangkok because it is very close to the city’s business centre. Many embassies are nearby with the city’s attractions accessible by travelling through the Sky train or public metro. It is very easy to avoid the city’s frustrating traffic because of the hotel’s convenient location.
The Japanese used to be the top buyers of Bangkok condos but now the property market is dominated by the Chinese. According to Prasert Taedullayasatit honorary president of Thai Condominium Association, in the last few years, Chinese buyers have shown interest on Bangkok’s condo market. The trend is expected to continue in the coming years.
Chinese buyers usually pay in cash. A condo project that is near the mass transport station was immediately acquired by Chinese investors even if the price was 10-20% higher than what was offered to Thai buyers. Last year, condo transfers to foreign investors reached a combined 71 billion baht accounting for 27% of the total condo transfers in Thailand’s capital city. One third or 23.6 billion baht was invested by Chinese buyers from the mainland while 13 billion baht came from Hong Kong buyers.
However, the issue with Chinese ownership is they do not stay at the unit but rent it out to tour operators or use it for AirBnb purposes. Mr. Praser also said that Chinese investments in Thai property developments through joint ventures have outpaced all other foreign investments including those from the Japanese investors that used to be very active 3 years ago.
The newly launched supply of condo units has higher value because majority of the supply are in within the inner city. Last year, supply of condo units has lower value because they were mostly located in the outer city locations.
Thailand welcomes millions of tourists of every year; however, some of them are also looking for opportunities for investment. Most businessmen opt to stay at Sukhumvit 4 star hotel because it is located in the center of the city. Attending business transactions is more convenient and efficient if they do not have to travel far from the hotel.