Tourists weren’t the only ones returning to Thailand. With borders fully open, foreigners reentered the Thai condo market to start 2023. Research from the Real Estate Information Centre (REIC) found that 3,775 condominium units worth THB17.12 billion (US$488.7 million) were transferred to overseas buyers during the first quarter of this year.
The number of transferred units increased by 79.2 percent when compared to the same period last year. According to the REIC, the number of foreigners acquiring Thai condos hit a five-year high.
Who is purchasing these properties? Here is a breakdown of first quarter condo transfers from the REIC by nationality:
- Chinese – 1,747 units
- Russians – 387 units
- Americans – 156 units
- Britons – 146 units
- Germans – 131 units
- French – 130 units
- Taiwanese – 94 units
- Myanmar – 76 units
- Australians – 71 units
- Indians – 63 units
In terms of location, Bangkok and the Eastern Seaboard remain by far and away the most popular places for foreigners active in the Thai condo market. These two locations accounted for 85 percent of all transactions during the first quarter of 2023.
One thing developers in the Kingdom will take note of is the most in-demand price point. Units priced at THB3 million and less continue to dominate sales. More than 50 percent of the foreigners who purchased Thai condos to start the year did so in the low-end segment.
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Interesting Analysis
The fact that foreigners are returning to the Thai condo market will be good news for the sector overall. In particular, the reappearance of Chinese buyers after years on the sidelines will be seen as a positive.
It remains to be seen if this is enough to clear the oversupply of condominiums in Bangkok which has prevented many homebuilders from launching new projects over the past few years. A strong second quarter could provide firms with the confidence needed to resume launches, although it may be best to hold off a little while longer until there is a more thorough understanding of what buyers are in the market for.
Keep Reading: Luxury leads the Bangkok residential property market as overseas buyers return
