The number of condominium transfers made by foreigners in the first quarter of 2022 continued to fall. The main reason for this is the draconian measures put in place by China to control the movement of its people because of its zero covid policy. In Q1 2022, the number of transfers attributed to the Chinese was 949 units. This is a 38.1 per cent drop compared to Q1 2021 when 1,532 units were transferred to Chinese buyers. Considering the Chinese made up the bulk of the transfers, approximately 45 per cent of all transfers, this is a rather significant statistic.
It is vital to note that the reason for the lower number of condominium transfers is that China restricting the movement of its citizens as it continues to be isolated from the rest of the world due to its zero covid strategy. Hence, it would be likely to be the case that when the Chinese government relaxes its zero-covid stance if it ever does, or when covid-19 is kept under control in China, the number of transfers attributed to Chinese buyers is likely to go up.
Coincidentally, the number of condominium units transferred to Russians shot up by 100 per cent when compared to Q1 2021. This is perhaps reflective of the ever-increasing number of Russians considering life abroad as their country is growing ever more isolated from the rest of the world due to the war in Ukraine.
Overall, the number of transfers that were made to 8 out of the top 10 nationalities receiving condominium transfers rose.
Looking at the numbers, if the Chinese were to maintain their rate of condominium transfers in Q1 2021, the number of units transferred in Q1 2022 by foreigners would be higher when compared to the number of units transferred in Q1 2021.
Globally, there is a flight to assets and one of these assets is property. The reason for this is that property is still seen as a good hedge against inflation. As inflation is stubbornly high just about in every corner of the world, property buyers are hedging against inflation by placing their monies in assets like property. So long as inflation remains stubbornly high, property buyers across the globe will continue to look to property as a “flight to safety”.
The Invest Bangkok Property editorial team
Source article: https://www.bangkokpost.com/business/2330288/zero-covid-policy-hitting-condo-transfers