With Chinese investors continuing to look abroad for new real estate, Thailand‘s property market has become a trendy pick due to its accessibility, a mature market and rising trade. An exclusive partnership between Juwai.com and PropertyGuru Group investigated this trend and found that the enquiry value of Thailand properties from Chinese investors came in at USD822 million. This was the highest total among countries in Southeast Asia.
The research shows that the median enquiry price for real estate in Thailand was USD92,000. This represents an increase of 463 percent when compared to the median enquiry price recorded two years ago. During this time there was a 40 percent growth in the volume of enquiries and views of Thailand properties from Chinese buyers.
The reasons for buying a property in Thailand do vary, but lifestyle and travel are two of the main motivating factors. More than 50 percent of real estate enquires from China stem from these. Wealthy Chinese buyers are drawn to the idea of owning a vacation home in a place outside of China but want one that is still easily accessible. Thailand, with its beaches and unique cultural attractions, is perfectly suited to take advantage of this holiday home trend.
Interest in Thai real estate among Chinese buyers normally increases when tourism rises. It should come as no surprise that the number of arrivals from China was up 13 percent during the first half of this year when compared to the same period last year, according to the Tourism Authority of Thailand. A total of 7.5 million Chinese tourists visited Thailand in 2015 and 10 million are expected to come this year. Experts believe the number of tourists from China should continue to increase steadily during the next ten years.
Thailand’s property market is also an attractive destination among some Chinese investors who continue to look for ways to diversify their portfolios and find better yields. This has led to a rise in outbound investment with Chinese buyers spending USD52 billion on foreign property in 2014. This total is predicted to increase to USD200 billion by 2020.
This sharp increase is due to the number of UHNWIs in China. There are currently more than 20,000 people in China who have a net worth greater than USD30 million. This is important to note because these buyers tend to make purchases in cash. In fact, 69 percent of Chinese property investors pay in cash.
Business and emigration are among the other reasons for the increase in Chinese interest in Thai real estate. Trade ties between Thailand and China continue to improve with the country recently becoming Thailand’s top trading partner. ASEAN investment rules allow a Chinese buyer with a home and a factory in Thailand to have access to the entire Southeast Asian market. And with Thailand known as the ASEAN’s transportation hub, establishing a base here is enticing for Chinese businesses.
