Chinese real estate investors who once dominated the market for luxury condos and apartments in Thailand are now scaling back their activity due to China’s economic downturn and the real estate turmoil there.
Conventional English-speaking nations such as Australia, Canada, the United Kingdom, and the United States have become more appealing to Chinese property buyers, overshadowing Thailand’s popularity.
In contrast to Thailand, Vietnam has experienced consistent interest from Chinese investors in apartment purchases, especially in major cities like Hanoi and Ho Chi Minh.
Thailand, which previously held the top spot for Chinese investors, has now slipped to fifth place, with Australia, Canada, the UK, and the US taking precedence.
Chinese buyers are increasingly acquiring homes in Australia for personal use or to secure Australian citizenship.
Over the past few years, Thailand had been a favoured choice for Chinese investors seeking residential properties. A real estate agency report revealed that Thailand was the preferred destination for Chinese buyers from 2018 to 2021. However, by 2022, Thailand had fallen to fourth place, and in the first half of 2023, it descended further to fifth.
China’s economic difficulties, encompassing issues like high youth unemployment, diminishing exports, and a real estate crisis, have raised concerns about its economic growth stalling.
Consequently, Chinese investors are becoming more cautious about ventures in Thailand, leading to prolonged deal closures. The long-term consequences will hinge on the actions of Chinese investors and how Southeast Asian nations navigate the aftermath.