As the travel industry gradually recovers from the pandemic, Chinese investors are once again showing interest in the Thai property market, especially when there’s value to be had according to a new report in the South China Morning Post. In February 2023, bookings for flights to Thailand from China increased by 67%, and the country’s tourism authority reported 161,540 Chinese tourists between January and mid-February. Experts predict that the number could reach 5 million for the whole year.
Thailand has long been a popular destination for Chinese tourists, and the country’s decision to grant Chinese passport holders a 30-day visa on arrival until the end of March is expected to draw even more visitors. Among them are potential investors like Eri Chen, who finds Bangkok’s downtown properties a better value for investment and retirement than Shanghai’s expensive real estate.
According to Thailand’s Real Estate Information Centre, Chinese investors have been the largest group of foreign buyers of condominium units in Thailand since 2018. The favourable factors driving Chinese buyers to the Thai property market are the competitive prices and investment yields, especially for condominiums in Bangkok. This is a key trend in Thailand’s market to look out for in 2023.
As of 2022, 49% of condominium units in Bangkok can be owned by foreigners, and the paperwork is relatively straightforward. The average price for units bought by Chinese investors is 5 million baht, with an average area of 39 square meters. Since the first nine months of 2022, Chinese buyers have purchased 3,562 units worth a total of 17.94 billion baht.
To meet the growing demand, Chinese real estate agencies are organizing group tours for property viewings in Bangkok. Interest in Thailand is particularly high among affluent Chinese. Uoolu, a Beijing-based overseas property consultancy, has organized a three-day tour, taking investors to four residential projects, including one close to the Impact arena in Bangkok. The units start at 230,000 yuan with a potential rental yield of 5.5%.
Other agencies are planning six-day tours that include visits to tourist attractions and property viewings. However, some Chinese investors are also looking beyond Bangkok, exploring other key destinations in Thailand such as Pattaya, Phuket, and Chiang Mai.
Despite the rising interest of Chinese investors, experts forecast that it will take time for demand to recover fully. Purchases of Bangkok condominiums from Chinese nationals remain at the 5 million-baht range in locations around Rama 9, Ratchada, and Sukhumvit.
While the Thai property market has been attracting Chinese investors for years, as travel restrictions ease, more Chinese investors are expected to enter the market as the Thai market looks to capitalize on expected gains in 2023. The favourable factors driving demand are the competitive prices and investment yields, straightforward paperwork, and an excellent location.
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