Chinese investors could soon be making their way into the blossoming Thailand condominium market as the property market and economy in their home country continues to slow down. At least seven Chinese investors are looking for joint ventures in Thai condominium projects and could spend up to THB10 billion to make it happen.
Alan Lin, managing director of property brokerage Harrison Co, said that the potential Chinese investors included developers, property funds and construction material makers. However, those most interested in Thai property are contractors with expertise in high-rise construction. Many of these have connections with Chinese partners who can help attract buyers to Thailand.
“As the Chinese economy tumbles, many Chinese investors in property-related business are looking for an opportunity for investment abroad,” Lin stated. “The first destination is normally Britain, followed by Australia, the US and Asian countries.”
These Chinese developers who hold an interest in the Thai market tend to be medium-sized operators. At the moment they are unable to compete with larger developers who have more funds to bid for land plots. Meanwhile Chinese property funds want to invest in recurring-income assets including retail complexes, hotels, serviced apartments and industrial estates.
Chinese investors have already scouted locations and hold tentative interest in Ratchadaphisek Road, the riverside area and Sukhumvit Road in Bangkok as well as in Pattaya, Phuket and Chiang Mai. One Chinese contractor has already announced plans to invest THB1.7 billion on an upscale condo development in central Bangkok worth THB5 billion. The deal will be finalized sometime in the next few months.
Harrison stated that it expects THB25 billion in sales this year, which would be an increase of THB7 billion from 2015. Lin concluded that the property market in Bangkok 2016 should be stable this year, but believes growth will be seen in locations along the Purple Line. Inner-city areas such as Silom, Lang Suan, Sathon and Sukhumvit roads could also continue to see growth.
