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.
so is Thailand still an attractive destination to invest in properties since the Chinese investors are no longer participating?
I think it depends. If you take a more global approach then perhaps you may want to consider other locations like Canada, the UK or the US. However, if you are from Asia then Thailand is perhaps still the closest location to where you are. Property investment can be challenging if you are investing in a location which is far from your place of residence and you want to take a more hands-on approach with your investment property. For example, clients may want to view the property and make periodic checks on the state and upkeep of the property. However, if you are able to detach yourself from the property and take a very hands-off approach then the world is your investment canvas. If you can treat a property like how you would treat a stock from a stock exchange then perhaps. An extremely small group of people can do this despite a large group of people claiming that they have this ability.
Also, the Chinese as an investment group is very large. We are still seeing brisk sales in Thailand. But my personal take is always to share any data which I read or know. Be it good or bad and let the investor take a more informed stance while deciding whether to commit to the investment.
Yours sincerely,
Daryl