China's Condo Craze Cools as Economic Woes Hit Thailand

[snoop1130]

File photo for reference only

 

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

[hotchilli]

18 hours ago, CallumWK said:

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

That's boom and bust baby...

[factual monk]

I'm waiting for next week news of booming real estate news for chinese investors... in Thailand 

[JonnyF]

With less Chinese tourists, and condos cracking down on AirBnB type arrangements, it makes sense that the Thai condo market would be less attractive to the Chinese.

 

Can't say I will be shedding too many tears. 

 

[jcmj]

Way too many condos being built and the Thai government making it difficult in every aspect doesn’t help. New taxes, laws and regulations will be another shot in their foot. Thailand only reacts to situations, it never thinks of ahead. Nothing new. When the economy collapses then they will try to find a solution, but for now better to blame anyone but themselves. 

[Tom100]

5 hours ago, jcmj said:

Way too many condos being built and the Thai government making it difficult in every aspect doesn’t help. New taxes, laws and regulations will be another shot in their foot. Thailand only reacts to situations, it never thinks of ahead. Nothing new. When the economy collapses then they will try to find a solution, but for now better to blame anyone but themselves. 

Yes. This is what I think too. I rent because I do not see the reason to buy into an oversupplied market. I am also worried about the constantly changing rules imposed on farang. 

[Celsius]

On 3/3/2025 at 6:41 PM, CallumWK said:

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

 

well wait another 2 months 

[UserC923]

It is not new that Thailand has been in recession since accepting Burmese refugees and the UN and the whole world have been fooled by Burma.

[Jim Blue]

Great no more empty village condos .

[bkk6060]

Maybe they are figuring out the over building resulting in Condos being a dead money or negative investment.  Especially,  if they cannot rent them out.

[realfunster]

You can imagine these Chinese investors being promised the earth by agents when buying these condos, they are finding reality a different experience. Low yields, high costs and limited resale options.

 

Let’s hope the condo bubble is not too big…

[Woke to Sounds]

Oh b0ll0cks.

 

Chinese investors are not idiots.

 

What kind of hefty gains would be made on Thai property, compared to Canada/Australia?

 

Smart Chinese money always goes into property in Vancouver, Canada or farmland in western Canada, or into urban Australia like Syds and Melbourne.

 

Nothing but perpetual gains in those markets.

[Woke to Sounds]

9 minutes ago, realfunster said:

You can imagine these Chinese investors being promised the earth by agents when buying these condos, they are finding reality a different experience. Low yields, high costs and limited resale options.

Then they are idiot investors and deserve a rinsing.