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BANGKOK 22 March 2019 00:44
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Chinese investors fuelling Thailand’s property market

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Chinese investors fuelling Thailand’s property market

By Suwatchai Songwanich 
CEO Bangkok Bank (China)

 

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Chinese investors have become an important driver of Thailand’s property market, particularly condominiums in Bangkok. The trend began a couple of years ago when the Chinese government imposed tougher conditions on property investment and has gathered momentum recently, due in part to the weaker yuan as the Thai market is considered to be reasonably priced.

 

Other factors that make Thailand attractive to Chinese property buyers include the ability to buy freehold property, lower taxes and fees compared with other markets, and great amenities such as swimming pools, gyms and saunas.

 

Thailand also appeals because of its geographical proximity to China, well-developed tourism infrastructure, and its culture.

 

According to Juwai.com, a popular website for international property listings, Thailand topped the list of inquiries last year, after being in third place the previous year and sixth the year before. While there is no definitive explanation as to why Thailand’s popularity has risen, it may simply be that other countries have become less attractive. Not only does the lower yuan make their property markets less affordable, but some countries previously considered attractive are now imposing stricter restrictions on foreign investment. 

 

The current wave of investment by Chinese investors into Thailand is largely targeting the rental market, with prices mainly falling in the low to mid-range bracket, reflecting the enthusiasm of middle income Chinese for alternative forms of investment. It is no coincidence that the places into which Chinese property buyers are pouring their money are also the most popular with tourists, namely Bangkok, Chiang Mai, Pattaya and Phuket, as properties in these areas are easier to rent out.

 

Looking to the future, I believe this trend will continue. Indeed, the attractiveness of Thailand should grow, since Thailand is part of China’s Belt and Road Initiative (BRI). Investment in the countries that support the BRI is encouraged, and new rail networks will boost real estate and construction. 

 

In short, Chinese investors consider investing in Thai property as both a shrewd and safe move. Thailand property developers that understand their needs and interests can feel optimistic about the future.

 

For more columns in this series please visit www.bangkokbank.com.

 

Source: http://www.nationmultimedia.com/detail/China-Business-Weekly/30364287

 

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-- © Copyright The Nation 2019-02-18

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Chinese + spending=Bhat/ sq meter.

Edited by mok199
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2 hours ago, webfact said:

Other factors that make Thailand attractive to Chinese property buyers include the ability to buy freehold property

Is that right? can Chinese people buy freehold (land?)

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2 hours ago, Fex Bluse said:

And, 95+% of condo builds begin to fall apart after 5 years. They are nearly all junk buildings

Just pawns in a giant Ponzi scheme.

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2 hours ago, chrisandsu said:

The Chinese normally buy property and ‘sit’ on it for a while , until they can sell for a profit . Sorry to say but it’s very rare a property appreciates in value in Thailand when there’s always a new complex being built next door for the same price ! 

 

This is true.

 

Dumb not so rich will come to Thailand. Better ones will buy real estate where as someone mentioned condos won't start falling apart after 5 years.

 

That being said, there is no doubt that Chinese are fuelling a condo boom in Bangkok.  Prices are going up. I may disagree about purchasing a property here, but I will never be in denial. Those who bought only 5 years ago made out like bandits on currency exchange alone. They could at least break even in Pattaya 🙂

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They are the new suckers.  You can make money, but it is really difficult.  There are easier places to invest and make money.  Thailand aint one of them.

Oops I made a handsome 400% profit within the last 14 month - and it was not difficult at all - it’s here you only need to know how!


Sent from my iPhone using Thailand Forum - Thaivisa mobile app
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Is that right? can Chinese people buy freehold (land?)


Don’t know if they can - but they do - where I live the Chinese are snapping up the 15-50
Million houses and directly opposite our new place a Chinese (I assume in the name of a company) is developing a 22 Rai plot dividing it into smaller plots for sale to his country men.

Land prices have risen around 500% in the last 8 years and keep rising.


Sent from my iPhone using Thailand Forum - Thaivisa mobile app

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3 hours ago, chrisandsu said:

The Chinese normally buy property and ‘sit’ on it for a while , until they can sell for a profit . Sorry to say but it’s very rare a property appreciates in value in Thailand when there’s always a new complex being built next door for the same price ! 

yes, and "the new complex" almost always totally blocks your sea / city / mountain view...

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Might be a sound investment in sea going boats for them first as there seams to be a myriad of empty dwellings in CM 🤔 

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1 hour ago, boonrawdcnx said:


Oops I made a handsome 400% profit within the last 14 month - and it was not difficult at all - it’s here you only need to know how!


Sent from my iPhone using Thailand Forum - Thaivisa mobile app

 

I agree with Boonrawdcnx, if you are at the right end of the property sector, Thailand is a very investible market. I have not done 400% in the last 14 months, but it's close to 100%.

 

Buying into the right projects and Developers off plan in the right areas, and its pretty hard to not make decent returns selling or renting.

 

Chinese are often buying sight unseen, usually in company structures - they don't like leases. They have a little learning to do on the risks of nominee company structures, but Developers are making it very easy for them.

 

Edited by DLock

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4 hours ago, chrisandsu said:

The Chinese normally buy property and ‘sit’ on it for a while , until they can sell for a profit . Sorry to say but it’s very rare a property appreciates in value in Thailand when there’s always a new complex being built next door for the same price ! 

The Chinese property developers may be different from the Chinese who buy.

To illustrate what I am going to say, Chinese buyers like to buy the equivalent of condos in London. These properties are build according to Pheng Shui principles and sold exclusively in China/Hong Kong. Almost none of them are lived in full-time; none of them are rented out. Instead, the individual/family investors stay in the condos when they visit London. And they now have bragging rights of a home in London.

 

The reason why they do this is because their primary reason for buying the property in the first place was to get the cash out of China and find a good way of holding it. They are holding the property a bit like people hold gold. It is a place to run to if things go bad. And you can always sell it if you need the foreign exchange, even if you get less for it.

 

The Chinese who are buying in Thailand are just lower on the rungs of the ladder than in London, probably paying about a quarter of less of what they pay for London equivalent. The commute is cheaper and they can go there for the weekend. 

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