Bangkok's Condo Market Increasingly Reliant on Foreign Buyers
A new report reveals that foreigners are snapping up nearly a fifth of all new condos in the capital, with Chinese and Myanmarese buyers leading the charge
- Foreign buyers accounted for 18% of all new condos sold in Bangkok in 2024 (5,748 units), a significant share that is growing as domestic demand falls.
- The reliance on international investors is heavily concentrated in certain districts; for example, foreign buyers purchased 67.9% of all condos sold in the Ratchada-Lat Phrao area.
- The most popular locations for foreign buyers were the City Centre, Ratchada-Lat Phrao, On Nut-Suvarnabhumi, and Bang Na-Thepharak, with Chinese and Myanmarese nationals being the primary investors.
- In response to the trend, real estate experts have proposed new regulations to manage the influx of foreign capital, such as minimum purchase prices and taxes on foreign buyers.
A detailed survey of Bangkok’s housing market has found that foreign buyers are propping up the city’s new-build condo sector, accounting for a significant 18% of all units sold in 2024.
The figures highlight a return to pre-pandemic purchasing trends by international investors, even as overall domestic demand has noticeably fallen.
According to Sopon Pornchokchai, president of the Agency for Real Estate Affairs, foreign nationals bought 5,748 out of a total of 31,897 new condos sold in Bangkok and its surrounding areas last year.
Sopon suggested that while these sales offer a boost to developers, the government should introduce new regulations to protect domestic buyers and manage the influx of foreign capital.
He proposed setting a minimum price for foreign buyers, similar to rules in Malaysia and Indonesia, and banning the sale of second-hand homes to non-citizens, a policy seen in Australia.
The Top Four Locations for Foreign Investors
The survey identified four key areas as the most popular among international buyers.
City Centre: The central business district, including Silom, Sathorn, and Sukhumvit, saw the largest volume of foreign sales with 2,159 units purchased. These transactions were valued at 25.14 billion baht, representing 31.3% of the area’s total sales value. Buyers came from a wide variety of countries in both the West and Asia.
Ratchada-Lat Phrao: This area recorded the highest market share for foreign buyers, who purchased 1,974 units, making up an extraordinary 67.9% of all condos sold there. The total value of these purchases was 8.45 billion baht, or 73.3% of the total. Chinese and Myanmarese buyers made up the majority of this group.
On Nut-Suvarnabhumi: This location saw foreigners buy 536 units, accounting for 29% of total sales. These transactions were valued at 2.44 billion baht, representing 50% of the total value. This area also saw a particularly high number of Chinese buyers.
Bang Na-Thepharak: Foreign buyers purchased 486 units here, or 13.4% of total sales, with a value of 1.62 billion baht. The primary buyers in this area were also from China and Myanmar.
Economic Impact and Policy Proposals
Despite the high volume of sales in specific areas, the report concluded that foreign purchases have a limited effect on the wider Thai economy.
The total value of residential property sold to foreigners in 2024 was estimated at a maximum of 100 billion baht, which is only about 10% of the country’s total housing sales.
Sopon suggested that to truly stimulate the economy, the government should focus on encouraging foreign investment in industrial estates and commercial property development, rather than the residential sector.
He also recommended implementing a series of taxes on foreign buyers to generate revenue, as is common in many other developed nations:
- A foreign buyer tax of 10% to 20%, similar to taxes in Europe, Hong Kong (30%), and Singapore (60%).
- An annual property tax of approximately 1% of the market value.
- A capital gains tax of 10% to 20% on profits from reselling the property.
- An inheritance tax of about 10% on the value of the estate.
