Surge in Thai condo market fueled by visa-free policy and Chinese buyers

[webfact]

The Thai condominium market is experiencing a surge in activity, largely due to a permanent visa-free policy for Chinese nationals, which has led to a significant increase in property purchases by foreigners.

 

In the first three quarters of the year 2023 foreign buyers transferred ownership of 10,703 units valued at 52,259 million baht (US$1.46 million). This momentum is expected to continue, with projections suggesting that the year-end figures will likely mirror those of the previous year, where transactions totalled 59,260 million baht (US$1.65 million).

 

The visa-free policy, which has been extended to tourists from Kazakhstan, India, and Taiwan temporarily, is anticipated to positively influence the Thai condominium market, as it facilitates easier travel.

 

Foreigners often purchase condos as a second home, close to their children’s schools, with the option to rent them out when not in use. Chinese buyers have been particularly active, accounting for nearly 50% of foreign transactions in the nine months of 2023, with 4,991 units transferred at a value of 24,740 million baht (US$691,602).

 

by Nattapong Westwood

Photo courtesy of iStock

 

Full story: The Thaiger 2024-02-06

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

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[flyingtlger]

58 minutes ago, webfact said:

This momentum is expected to continue

"Expected" is the key word.....

[BE88]

Welcome to the Chinese Mafia

[edwinchester]

"....projections suggesting that the year-end figures will likely mirror those of the previous year..."

 

Hardly a surge then if figures are similar to the previous year when visa free travel for Chinese wasn't available.

[rgrdns]

The RE market is overloaded and overpriced, I noticed more and more sale advertisements.

[2baht]

2 hours ago, webfact said:

The Thai condominium market is experiencing a surge in activity, largely due to a permanent visa-free policy for Chinese nationals

Insurgency!

[John Drake]

51 minutes ago, BE88 said:

Welcome to the Chinese Mafia

 

I would hate to live in a Chinese dominated condo (actually, I would dislike being in any condo). Seeing Chinese tourists troop in by the hundreds in a hotel-by-any-other-name condo would be my worst nightmare. You'd be stuck there.

[soi3eddie]

1 hour ago, flyingtlger said:

"Expected" is the key word.....

 

Absolutely correct. These articles are always based on expectations. From The Thaiger linked main article "The primary foreign demand comes from groups in Hong Kong, Taiwan, and Myanmar." So it appears that purchasing condos in Thailand, is for these people, a flight to safety, be that financial or personal safety. Once that limited demand is met, then what for the Thai condo market?

 

Edited February 6 by soi3eddie

[bamnutsak]

Are funds remitted to Thailand for a condo purchase now taxable, for those who are tax residents?

 

 

 

 

[khunjake]

1 hour ago, rgrdns said:

The RE market is overloaded and overpriced, I noticed more and more sale advertisements.

The build quality of condos have also deteriorated rapidly in recent years as well. Imagine buying a condo only to have paper thin walls and ceilings so that you can hear (and feel) every word and motion of your “quiet” Chinese neighbors. 

[Butts]

Strange thing is the Chinese Law allows for only $50K USD to be sent out of China per year, so how are they illegally buying these Thai Property's?

Edited February 6 by Butts

[spidermike007]

It mentions the total value of all condo transactions and it also mentions that Chinese were responsible for 50% of them. I wonder what the average buy price was for the typical Chinese buyer, relative to the Thai and foreign buyers who are sometimes spending 10 to 50 million baht for a luxury condo, in a top building, on a high floor. 

 

Also I would hardly call those numbers a surge, when they are fairly similar to last year. 

[wensiensheng]

“a permanent visa-free policy“

 

What is a permanent visa free policy?

Entry without requiring a visa until such time as the policy is changed?

 

Free tourist entry visa, good for 90 days?

 

Permanent entry visa free of charge.

 

some combination of the above?

 

I’m unsure why any of them would cause the condo market to boom. It was easy enough for Chinese to get a tourist visa previously and I don’t think the requirements for any other visas have changed. But hey ho, any reason to talk up the housing market is a good reason

 

 

[hotchilli]

6 hours ago, webfact said:

The Thai condominium market is experiencing a surge in activity, largely due to a permanent visa-free policy for Chinese nationals, which has led to a significant increase in property purchases by foreigners

You may live to regret that..

[wensiensheng]

3 hours ago, bamnutsak said:

Are funds remitted to Thailand for a condo purchase now taxable, for those who are tax residents?

 

 

 

 

If it is income accumulated since 1st Jan this year, I believe the answer is yes. If it was accumulated in prior years, no, it will be treated as capital.

[loong]

"Visa free travel to Thailand." said the Chinese man, "That is great, I can afford that 10 million Baht condo now"!

[arick]

10 times that amount they lost in Thailand in 2019 from one project highly doubt they will repeat the same mistakes 

[arick]

Do the Chinese get a free trip to the DSI after purchasing their corrupt units 

[NemoH]

What a fake news .. 🤣🤣🤣🤣
even the Chinese are broke now 🤣🤣 n they do not need visa free to buy condos 🤣🤣

Edited February 6 by NemoH

[Henkjan2]

Since the Chinese real estate market is so unreliable and unstable (and limited) i do expect a surge of sales over here. 

 

Especially from the cooler Northern China area as well as from Taiwan* and Hong Kong*.

 

* fleeing option

[bradiston]

21 minutes ago, Butts said:

Strange thing is the Chinese Law allows for only $50K USD to be sent out of China per year, so how are they illegally buying these Thai Property's?

I came up against a similar problem when attempting to close a deal with Chinese buyers for my house here. Long story short, their suggested method of RMB transfer and exchange into THB was obviously a money laundering exercise which involved a great deal of risk. Maybe these phantom buyers have the means to complete purchases, but how many more dodgy deals are we going to read about in the near future?

[Mike Teavee]

7 hours ago, webfact said:

transferred ownership of 10,703 units valued at 52,259 million baht (US$1.46 million

$1.46 Million for 10,000 condos puts the average price at $146 per unit which sounds about right for some of the shoeboxes that are going up nowadays! 
 

 

[chrischronic]

Friends have been complaining that the rent of condos in BKK is increasing dramatically due to condos being bought out and foreigners paying way too much on rent. I've been hearing stories of full floors being bought out and only finding foreign renters who will pay high because they compare rent to their home countries. I have a few friends who are very concerned that prices are going to get out of control. Do you think this will become a problem with rent increasing all across BKK?

[phil2803]

28 minutes ago, wensiensheng said:

“a permanent visa-free policy“

 

What is a permanent visa free policy?

Entry without requiring a visa until such time as the policy is changed?

 

Free tourist entry visa, good for 90 days?

 

Permanent entry visa free of charge.

 

some combination of the above?

 

I’m unsure why any of them would cause the condo market to boom. It was easy enough for Chinese to get a tourist visa previously and I don’t think the requirements for any other visas have changed. But hey ho, any reason to talk up the housing market is a good reason

 

 

 

I read it as a permanent stay in Thailand without a visa, for free,  but I think it is actually a permanent policy of a visa free 30 day stay.

[Guderian]

7 hours ago, webfact said:

10,703 units valued at 52,259 million baht (US$1.46 million)

 

Blimey, the Baht must have taken a right old tanking overnight, that's an exchange rate of 35,616 THB/USD!

I'm off to Wise to transfer $50 here, that should be enough Baht to buy a new Fortuner! lol

[Sig]

Whether or not it's actually a surge.... I can't even begin to fathom the nightmare of living in a condo with any appreciable number of Chinese residents, like more than one, hopefully separated by more than one floor. As much as I enjoy my friendship with a few Chinese immigrants, I've had some hideous experiences with Chinese in hotels. I was really sad to inform the owner of a hotel in Chiangmai that I had regularly gone to for 15 or so years, that I wouldn't be returning again. He knew exactly why before I even began to say. I really enjoyed the owners acquaintance and loved the location/comfort/price of his hotel. Then... a tour operator who catered to Chinese found it. That was the end! So much for enjoying quiet, sleepy Chiangmai... An experience I'll never forget. They completely destroyed my continued love of traveling to my nostalgic familiar haunt and relaxing vacations up north. I've since found other places to enjoy, but nonetheless, it was quite a sad day and has never been quite the same....

Edited February 6 by Sig

[bradiston]

And where's the evidence the "surge" is down to a visa free policy? Government claiming all the laurels. Taiwan and I guess may countries have had visa free policies for years. Mr Johnny-cum-lately Sweater thinks he's the saviour of the nation.

[mokwit]

yes, yes, such demand you had better buy one before they are all gone.

[Celsius]

51 minutes ago, Mike Teavee said:

$1.46 Million for 10,000 condos puts the average price at $146 per unit which sounds about right for some of the shoeboxes that are going up nowadays! 
 

 

 

you don't understand how Thais do numbers. I hope you are a newbie otherwise the post is embarrassing.

[Sluglord]

And all this happening at the same time the Chinese real estate market is on life support and despite 65% of wealth stored in real estate 🙄 Fancy that.

 

This building has easily 30% condos up for sale. Probably 40% next door.

56 minutes ago, Henkjan2 said:

Since the Chinese real estate market is so unreliable and unstable (and limited) i do expect a surge of sales over here. 

 

Especially from the cooler Northern China area as well as from Taiwan* and Hong Kong*.

 

* fleeing option

 

Assuming their home can be sold and if so for how much. Real estate in China is in financial chaos.