Chinese, Russians among top condo buyers

Chinese and Russians have topped the list of foreign buyers of condominiums in Thailand this year, with sales surging in tourist hotspots like Bangkok, Pattaya and Phuket.

A total of 10,703 units worth 52.3 billion baht (US$1.5 billion) were sold in the nine months through September from a year earlier, according to the Real Estate Information Center. That is a 38% jump from a year ago, the centre, managed by state-owned Government Housing Bank (GHB), said.

Chinese buyers snapped up 4,991 units, or almost 47% of the total transactions, valued at 24.7 billion baht, the centre said, citing property registration data. Russians ranked a distant second at 962 units, followed by United States and Taiwanese buyers in the third and fourth spots, respectively.

Almost 42% of the condos were sold in Chon Buri province, that is home to several beaches and industrial estates. Bangkok, Thailand’s capital city and a gateway for millions of tourists, accounted for 37.5% of the apartment sales to foreigners, the centre said.

“Thai condominiums are still in demand among foreign buyers,” Wichai Wiratkaphan, acting director at the information centre, said in a statement. “The purchase is for both investment and as a second home in Thailand.”

Condominiums under construction along Rama IX Road in Bangkok. (Photo: Pattanapong Hirunard)

Prime Minister and Finance Minister Srettha Thavisin is counting on tourism to drive the country’s economic growth, with the sector accounting for about 12% of gross domestic product (GDP) and nearly a fifth of jobs. He has temporarily waived visas for travellers from China, Russia, Kazakhstan, India and Taiwan, and ordered airlines to add more routes while streamlining airport operations to reduce waiting times for visitors.

The visa waivers may further fuel demand for Thai condos, Mr Wichai said, adding that foreign ownership was way below the legal limit set by authorities. The forecast for an increase in tourist arrivals next year will drive demand, he said.

The Tourism Authority of Thailand (TAT) expects a further recovery to 35 million visitors next year, including 8.2 million from China. That is still below the record foreign tourist arrival of almost 40 million in 2019, the year before the Covid-19 pandemic.