China's Condo Craze Cools as Economic Woes Hit Thailand

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Once a hotspot for Chinese investment, Thailand's condo market is losing its luster as economic uncertainty grips China's middle class. Stephen Yao, previously a bustling Chinese investment broker in Bangkok and Pattaya, faces stark changes. In 2017 and 2018, he made 32 trips from Guangdong to Thailand. Today, the situation is dire.

 

China's middle-class investors once eagerly bought real estate in Thailand and beyond, seeking asset diversification and exciting lifestyles. Yet sluggish economic recovery and a domestic real estate crisis have reshaped the landscape. "The investment landscape has changed dramatically," Yao observes.

 

Once-booming markets are now stumbling. Many agents have changed careers amidst rising unemployment and mortgage pressures. Investors face minimal returns and properties likened to "sunk costs," as selling becomes increasingly difficult. Legal solutions offer partial recovery, but many are strapped by domestic loans.

 

The once-thriving market for foreign second homes in Thailand is narrowing. Decreasing Chinese tourism, vital for revenue, exacerbates the situation with fewer visitors and higher costs. Zhu Maowen, a writer and Bangkok real estate investor, concurs. "Second-hand properties haven't appreciated. Rental yields reach 5%, but maintenance is pricey."

 

Adapting, Yao now assists Chinese building material brands entering Thailand. "The hard truth is that the game has changed," says Zhu, echoing sentiments of industry adaptation.

 

 

This trend doesn't stop at Thailand. Vietnam's market is similarly cooling. Frankie Wang, a Ho Chi Minh City property salesman, highlights waning Chinese investment enthusiasm due to dwindling boldness and capital.

 

In Japan, the rental market in Tokyo holds steady but faces challenges from short-term rental bans. Tina Chen, a property consultant, notes, "Rental stability is good, but yen depreciation affects yuan returns."

 

In Malaysia, Emma Jian bought property in 2017 and finds hope as prices have risen, though they fall short of her investment at 20,000 yuan per square meter. Without a quick sale option, Jian opts for a holiday home.

 

China's economic slowdown echoes through these markets, turning once-promising opportunities into cautious ventures. As Chinese investors recalibrate, the allure of foreign real estate now requires careful reconsideration, reported The Thaiger.

 

-- 2025-03-03

 

 

[CallumWK]

Oh, I thought less than 2 months ago the real estate market was booming