A recent report has highlighted a significant decline in condominium sales to foreign buyers in Thailand during the second quarter of 2024. The total value of these transactions amounted to 14 billion baht, with Chinese buyers facing notable difficulties. Despite this, Chinese nationals continue to be the largest group of foreign property owners in the Thai market.
Key Takeaways
- Foreign condo transfers dropped by 6.2% in number and 17.7% in value compared to the same period last year.
- Chinese buyers remain the largest group of foreign property owners, followed by Myanmar and Russian nationals.
- Indian nationals are purchasing the highest-value condominiums, with an average price of 6 million baht.
Decline in Foreign Condo Sales
Wichai Wiratkapan, acting director of the Real Estate Information Center (REIC), reported a 6.2% decrease in the number of foreign-owned condo units transferred and a 17.7% decline in value compared to the same period last year. The overall picture for the first half of 2024 shows 7,280 units transferred to foreign owners, valued at 32.888 billion baht. However, the second quarter figures highlight a cause for concern.
Leading Foreign Buyers
Chinese buyers continue to lead in condominium ownership transfers with 2,872 units valued at 13.203 billion baht. Myanmar nationals follow in second place with 638 units worth 3.240 billion baht, while Russian buyers rank third with 567 units valued at 1.874 billion baht. Taiwanese and American nationals complete the top five, with 326 and 292 units respectively.
Notable Trends
- Chinese Buyers: Despite leading in volume, there has been a notable decline in purchases by Chinese nationals during the second quarter.
- Indian Buyers: Indian nationals are purchasing the highest-value condominiums, with an average purchase price of 6 million baht. They are also acquiring the largest units, with an average size of 71.3 square meters.
- Other Nationalities: Purchases by Russian and Myanmar nationals have also seen a decline during the second quarter.
Conclusion
The sharp fall in condo sales to foreigners in the second quarter of 2024 raises concerns about the future of the Thai real estate market. While Chinese buyers continue to dominate the market, the challenges they face could have long-term implications. The trends observed among Indian buyers purchasing high-value and larger units may offer some insights into shifting market dynamics.
Sources
- Sharp fall in condo sales to foreigners in the second quarter of 2024, Nation Thailand.
