Chinese Buyers Set to Scale Back Thai Apartment Purchases as Tourism Slows and Quake Impact Felt

Chinese purchasers are anticipated to account for under 40% of condominium transfers in Thailand for another successive year, due to weakened tourism from their country and diminished confidence following the recent earthquake.

Last year, condominium transfers involving Chinese purchasers made up 39% of all international transfers, which is the first decline below 40% in half a decade. In 2020, the proportion of such transactions with Chinese buyers stood at 61%, decreasing slightly to 58% in 2021 before dropping further to 49% in 2022.

Patcharaphot Nuntramas, who leads Krungthai Compass—the research arm of Krungthai Bank—stated that the drop in condominium sales to Chinese purchasers mirrors a downturn in tourists from China. This shift can be linked to heightened rivalry from other nations such as Japan, Vietnam, and South Korea in attracting travelers.

The recent earthquake in Thailand This will probably reduce condominium sales and acquisitions involving Chinese purchasers in the coming year, he mentioned.

The earthquake in Myanmar also impacted certain regions of China, with Krungthep Compass predicting that this calamity would decrease demand and buying capacity for Chinese condominiums, although the effect is anticipated to be temporary.

According to the research firm, condominium purchases by international buyers in Thailand amounted to 68,183 units last year, marking a 6.8% decline compared to the previous year after several years of continuous growth starting from 2020. The peak for such transactions occurred in 2023 with 73,161 units, representing a 23.5% rise year-over-year. Notably, the most significant surge happened in 2022, where there was a 49.2% jump from 59,261 units transacted previously.

Chinese purchasers continue to top the list of foreign condominium transfers in Thailand, with buyers from Myanmar, Russia, Taiwan (China), and the United States following closely behind.