A view of the business district is seen from the rooftop of the Baiyoke Sky Hotel in Bangkok, Thailand on April 29, 2020. Photo by Reuters
Condo transfers from Chinese buyers in Thailand are expected to remain at less than 40% of foreign transfers for the second consecutive year, as tourism from the nation softens and the recent earthquake dampens confidence.
Chinese buyers’ condo transfers accounted for 39% of total international transfers last year, marking the first time in five years the figure dropped below 40%. The share of condo transfers from Chinese buyers was 61% in 2020, then fell to 58% in 2021 and 49% in 2022.
Patcharaphot Nuntramas, chief economist at Krungthai Compass, a research center under Krungthai Bank, said the decline in condo transfers by Chinese buyers aligns with a reduction in visitors from that country. The tourism decrease is attributed to increased competition from other countries, particularly Japan, Vietnam and the Republic of Korea.
The recent earthquake in Thailand will also likely dampen condo transfers and purchases by Chinese buyers this year, he said.
The Myanmar earthquake also affected some areas of China, and Krungthai Compass predicted the disaster to reduce demand and purchasing power among Chinese condo buyers, though the impact is expected to be short-term.
The research house said total condo transfers by foreign buyers in Thailand last year totaled 68,183 units, a 6.8% year-on-year decrease, following consistent growth since 2020. Condo transfers peaked in 2023 at 73,161 units, up 23.5% year-on-year while the highest growth rate was recorded in 2022, with a 49.2% increase based on 59,261 units.
Chinese buyers remain the leading group for condo transfers to foreigners in Thailand, followed by buyers from Myanmar, Russia, Taiwan (China), and the U.S.
