Chinese buyers are expected to account for less than 40% of foreign condominium transfers in Thailand for the second year in a row, with a combination of reduced tourism from China and the impact of a recent earthquake dampening investor confidence.
Last year, Chinese buyers were responsible for just 39% of all foreign condo transfers, marking the first time in five years that their share fell below 40%. This follows a steady decline from 61% in 2020 to 58% in 2021 and 49% in 2022.
The reduction in Chinese buyers' involvement in Thailand's condo market aligns with the drop in tourist arrivals from China, which has been attributed to rising competition from other destinations, notably Japan, Vietnam, and South Korea. The slowdown in tourism, which has traditionally driven demand for real estate in popular areas like Bangkok and Pattaya, is expected to continue affecting property transactions this year.
The recent earthquake that struck parts of Thailand further deepened the situation. The tremors have raised concerns about the safety of buildings, which could cause Chinese buyers to pause or rethink their property purchases in the country. The earthquake's impact has also been felt across some regions of China, potentially weakening the purchasing power and demand from Chinese investors. Although the effects are expected to be short-term, they could influence decisions in the coming months.
Overall, foreign condo transfers in Thailand have declined. Last year, the total number of condo transfers by foreign buyers dropped by 6.8%, falling to 68,183 units. This came after consistent growth since 2020, with a peak of 73,161 transfers in 2023, representing a 23.5% increase from the previous year. Despite the overall downturn, Chinese buyers remain the largest group of foreign investors, followed by buyers from Myanmar, Russia, Taiwan, and the United States.
