According to data gathered by Juwai IQI, a pan-Asian real estate sales and media group based in Kuala Lumpur, Chinese residential buying interest rebounded over the past two quarters. This is after four quarters of double-digit declines. Chinese buyer inquiries for Thai property increased by about 38% in the first quarter of 2021.
“The long-term outlook is this: Bargain-hunters are buying now. The boom starts when travel reopens,” said Georg Chmiel, co-founder and executive chairman of Juwai IQI Group.
“For Chinese buyers, Thailand right now represents an opportunity. Not everyone is brave enough to purchase in such uncertain times, but there are many forward-looking Chinese property buyers who are. They are buying investments, second homes and even future primary residences in Thailand.”
Total sales to Chinese buyers dropped by half in 2020 when compared to 2019. The main reason was because of the restrictions on travel. As the Chinese could not come over to Thailand, the interest in Bangkok properties slumped accordingly. As foreign buyers of Thai properties tend to focus on luxury properties, few buyers are willing to make a decision for such large purchases without coming to visit the property.
However, with the anticipated easing of restrictions on international travel, the interest in Bangkok properties should return. This is especially so when you consider that the Chinese economy is recovering very quickly. The Chinese consumers will have excess savings and they are expected to invest in real estate. The resumption of international travel would depend heavily on the pace of vaccination in Thailand and the quarantine arrangements. There is already much talk of easing some of these measures once a large proportion of the country has been vaccinated.