Foreign buyers are expected to drive growth in Thailand’s property market in the second half of this year.
Key Takeaways
- Foreign buyers are driving growth in Thailand’s property market, while domestic buyers are still facing challenges due to unfavorable factors.
- The number of condominium transfers by foreigners in Thailand has significantly increased, reflecting a positive recovery trend in the real estate market.
- The value of property units in Thailand is expected to increase in 2023, with foreign buyers predicted to account for a significant portion of total units sold.
The country has seen improvements in its economy thanks to foreign purchasing power and the reopening of China, but domestic buyers have not fully regained their purchasing power due to factors such as rising interest rates, inflation, and political uncertainties.
The number of condominium transfers by foreigners increased by 79.2% in the first quarter of 2023 compared to the same period last year. Foreign buyers typically have higher budgets than Thai buyers and prefer to live in main business districts.
Foreign buyers typically have higher budgets than Thai buyers, preferring 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) of the Government Housing Bank, 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, and 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.