Foreign demand for Thai condominiums steady despite economic uncertainty
Despite fluctuations in economy and a decline in Chinese tourism, demand for condominiums from foreign buyers in Thailand remains stable, with Chinese investors still making up a significant share of market.
- Despite economic challenges and a decline in tourism, the number of condominium ownership transfers by foreign buyers has remained stable since 2023, ranging from 3,300 to 3,900 units per quarter.
- Foreign buyers are typically not impulsive first-time tourists, but rather individuals who have visited Thailand multiple times and are familiar with the locations and purchasing process.
- Chinese nationals constitute the largest group of foreign buyers, accounting for a significant portion of transfers, although their market share has declined from its peak between 2018 and 2021.
Amid the fluctuations in the domestic economy, the purchasing power in the country remains fragile, particularly in the real estate market.
Meanwhile, the foreign demand, which had been a key driver of the condominium market, has weakened due to economic factors, fluctuations in the Thai baht, stricter regulations in various countries, and a decline in tourism to Thailand, especially from China.
However, despite a decrease in condominium ownership transfers, the overall demand from foreign buyers in the Thai condominium market continues, although the reasons for this demand remain to be seen.
Foreign buyers purchasing condominiums in Thailand do not necessarily mean they are first-time visitors who immediately decide to buy a condo after visiting.
They are more likely to be foreigners who have visited multiple times, gained familiarity with specific areas, and are comfortable with the process of buying and transferring ownership.
According to Surachet Kongcheep, head of Research and Consulting at Cushman & Wakefield Thailand, while some foreigners may decide to purchase a condominium due to family, relatives, or friends who have already made similar purchases, such buyers are not the majority.
For foreigners to decide on purchasing a condominium in Thailand, they usually have visited more than once and have gained some level of familiarity with the locations and neighbourhoods.
They also have a better understanding of the buying and ownership transfer processes, which they either learn on their own or through interactions with sellers, whether developers, salespeople, or agents.
Since 2023, the number of condominium ownership transfers by foreign buyers in Thailand has remained relatively stable, with minimal fluctuations each quarter.
The transfer volume has ranged from 3,300 to 3,900 units per quarter.
The largest group of foreign buyers transferring condominium ownership in Thailand is from China, accounting for about 4–6% of total ownership transfers across the country each year.
When considering only the foreign buyer market, the percentage of Chinese buyers transferring ownership is between 33.7% and 63%, with variations from year to year.
Over the past two to three years, the share has been lower than 50%, a decline from the 58–63% range observed between 2018 and 2021.
The number of Chinese condominium ownership transfers may not align directly with the number of Chinese tourists.
Although ownership transfers have decreased in the last 1–2 years following a drop in Chinese tourists visiting Thailand, the overall number of Chinese nationals coming to Thailand for work, study, business, or other purposes remains high and surpasses foreign nationals from other countries by a clear margin.
