Thai developers are now targeting buyers from Mainland China to increase their sales numbers. This shift in focus comes as demand from buyers in overseas markets like Hong Kong may be leveling off.
“Investment from Hong Kong has plateaued. But we anticipate strong growth from Mainland China,” Cobby Leathers, director of international business at Sansiri, told the South China Morning Post. He noted that the company has set a CNY200 million sales target for Mainland China this year.
Hong Kong has been the largest overseas market for Sansiri. Nearly 45 percent of its international customers are based there. The newspaper noted that Singapore was second with a 25 percent share while Chinese customers accounted for 20 percent of Sansiri’s international buyers. The developer sold CNY84 million worth of property to Chinese investors in 2015. This total was nearly three-times the amount sold in 2014.
One reason Thai developers are shifting their focus according to Si Zhi, vice president of Soufun Holding, is that Hong Kong is a relatively small market when compared with Mainland China which has a lot of untapped potential.
Anchalika Wongwaiwisarn, managing director of Ancha Property, told the newspaper that she also expects to see a steady pickup in demand from Mainland China. One of the most popular destinations for Chinese buyers is Chiang Mai because it is more affordable than other locations in Thailand.
“I expect to see more Chinese transactions this year, with Chiang Mai leading the way,” Anchalika explained. “The political problems in Thailand would not impact Chinese real estate interest.”
Buyers from Mainland China looking for a lifestyle investment consider buying in Phuket or Pattaya. Kingdom Property is one Thai developer in Pattaya that has seen an uptick in Chinese buyers with 40 percent of oversees customers coming from Mainland China, Hong Kong and Taiwan. The company also organises travel trips to Thailand for Chinese buyers to visit their project.
