Chinese investors fuelling Thailand’s property market

[webfact]

Chinese investors fuelling Thailand’s property market

By Suwatchai Songwanich 
CEO Bangkok Bank (China)

 

 

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

 

-- © Copyright The Nation 2019-02-18

[chrisandsu]

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 ! 

[Fex Bluse]

13 minutes 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 ! 

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

 

The ones that are decent are built in collaboration with Japanese construction and investment companies, usually targeting Japanese expats. But, these tend to be quite expensive. 

[mok199]

Chinese + spending=Bhat/ sq meter.

[yellowboat]

2 hours ago, webfact said:

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.

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.

[alant]

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?)

[RotBenz8888]

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.

[Pravda]

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 ????

[boonrawdcnx]

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

[boonrawdcnx]

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

[thurien]

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...

[from the home of CC]

a perfect place to wash crystal meth profits...

[sammieuk1]

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

[DLock]

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.

 

[Proboscis]

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. 

[Kenchamp]

9 minutes ago, DLock said:

 

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.

 

Yep, i own several condos here bought between 2007 and 2017 and would make money on every one if i chose to sell but have no intention of selling any for now

[Rod the Sod]

3 hours ago, yellowboat said:

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.

Well I have achieved just under 70% growth in 2 years based on value increase and FX. Sounds like some who lost out are a tad bitter in their thinking..

 

My properties in Hong Kong, Singapore and France cannot hold a candle to that.

 

Now, where did you get your insights from again??

[yellowboat]

2 hours ago, Rod the Sod said:

Well I have achieved just under 70% growth in 2 years based on value increase and FX. Sounds like some who lost out are a tad bitter in their thinking..

 

My properties in Hong Kong, Singapore and France cannot hold a candle to that.

 

Now, where did you get your insights from again??

Sure everyone on this forum would rather hear you positive story instead of my negative one.  So go ahead please.  Tell us a positive story about investing in the Thai condo market .  

[yellowboat]

4 hours 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

Guess this is your little secret and you won't share ?  You got me there.  Can't argue with a guy who has a secret.   Sure many on this forum would rather hear your positive tale rather than my cautionary one.  Up to you secret person. 

[bowerboy]

3 hours ago, Rod the Sod said:

Well I have achieved just under 70% growth in 2 years based on value increase and FX. Sounds like some who lost out are a tad bitter in their thinking..

 

My properties in Hong Kong, Singapore and France cannot hold a candle to that.

 

Now, where did you get your insights from again??

 

1. Is this a real money in the bank 70% gain or is it hypothetical (ie: you think it’s worth x but you haven’t actually received that in a real actual sale of the asset).

 

2. If so then please enlighten us as to where you brought the property and what the details were (price per sqm, bought off plan, bought when sold when etc). Why was the cost of the property?

 

Same questions for Donald Trump who made the 400% in 3 weeks or whatever it was.

[dcnx]

7 hours ago, yellowboat said:

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.

Been doing it for 10 years, it’s actually very easy if you know what you’re doing. 

[dcnx]

1 hour ago, yellowboat said:

Guess this is your little secret and you won't share ?  You got me there.  Can't argue with a guy who has a secret.   Sure many on this forum would rather hear your positive tale rather than my cautionary one.  Up to you secret person. 

Why would he share?

 

1) He’s wasting his time sharing to the people here. Not one of you will take action and do anything if you’re not already. Half the board can’t string together 800k for a retirement visa.

 

2) The fewer people in the way and competing for the same property, the better. 

 

That said, it’s not rocket science.

[dcnx]

4 hours ago, Rod the Sod said:

Well I have achieved just under 70% growth in 2 years based on value increase and FX. Sounds like some who lost out are a tad bitter in their thinking..

 

My properties in Hong Kong, Singapore and France cannot hold a candle to that.

 

Now, where did you get your insights from again??

No doubt he got his insights from sitting in the cheap seats watching the game.

[Lacessit]

4 hours ago, Kenchamp said:

Yep, i own several condos here bought between 2007 and 2017 and would make money on every one if i chose to sell but have no intention of selling any for now

If you bought a condo in 2007, yes you should make money. Permit me to doubt you will on one bought in 2017 - unless you're going to wait another 10-15 years.

Anyone buying condos in Bangkok is running the risk of global warming wiping out their investment. A city that's 1 metre above sea level?

[yellowboat]

17 minutes ago, dcnx said:

Why would he share?

 

1) He’s wasting his time sharing to the people here. Not one of you will take action and do anything if you’re not already. Half the board can’t string together 800k for a retirement visa.

 

2) The fewer people in the way and competing for the same property, the better. 

 

That said, it’s not rocket science.

We should trust you and the tuk tuk drivers who offer tours of Bangkok for B20.   Okay, thanks for your inspiration and all important insights. We've learned a lot about investing in property market in Thailand.

[yellowboat]

46 minutes ago, dcnx said:

1) He’s wasting his time sharing to the people here. Not one of you will take action and do anything if you’re not already. Half the board can’t string together 800k for a retirement visa.

 

2) The fewer people in the way and competing for the same property, the better. 

1) So you are here just to flaunt your secret knowledge and less than secret wealth amongst those of us who disbelieve or would like to understand more ?  And the B800k insult is to stress why you shouldn't have to share the specifics of your investment genius to us rabble?  Then why are you here spouting off unless it is for some sort of cathartic reflex?  Do you feel better now ?

 

2) The more people in a market drives up prices.  So your not sharing only hurts you.

 

property must really be your thing, because forming an argument is not

[xylophone]

5 hours ago, DLock said:

They have a little learning to do on the risks of nominee company structures, but Developers are making it very easy for them.

Yes always someone here willing to break the law in order to make money..........especially the property spruikers. 

[yellowboat]

39 minutes ago, xylophone said:

Yes always someone here willing to break the law in order to make money..........especially the property spruikers. 

We can agree that the laws are not great here.   Business decisions based on breaking laws, regardless of how dumb they are, is not a good idea.   That is why I do not do certain things here, and why technology does not thrive here. 

[Kenchamp]

1 hour ago, Lacessit said:

If you bought a condo in 2007, yes you should make money. Permit me to doubt you will on one bought in 2017 - unless you're going to wait another 10-15 years.

Anyone buying condos in Bangkok is running the risk of global warming wiping out their investment. A city that's 1 metre above sea level?

Not Bangkok, i'm in Jomtien.

 

I concede being from the UK that exchange rates until now have helped with any potential profit from purchases before all this Brexit <deleted> hit the fan and that the last one i purchased in 2017 might swing the other way if all of a sudden a fantastic deal is done which propels sterling much higher. However, ocean front with full on sea views will always be highly sought after which is what i bought in 2017 and where i now live, i am also very comfortable with the investment.

[Lacessit]

3 hours ago, Kenchamp said:

Not Bangkok, i'm in Jomtien.

 

I concede being from the UK that exchange rates until now have helped with any potential profit from purchases before all this Brexit <deleted> hit the fan and that the last one i purchased in 2017 might swing the other way if all of a sudden a fantastic deal is done which propels sterling much higher. However, ocean front with full on sea views will always be highly sought after which is what i bought in 2017 and where i now live, i am also very comfortable with the investment.

While I don't know Jomtien's height above sea level, there are swathes of ocean front land world-wide at risk from global warming. Some of the more extreme models are predicting sea level rises of 10 - 15 metres. That would wipe out most of the Florida Keys.

Your choice, and it may never happen. However, personally I'd prefer mountain-top views.