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The ongoing conflict in Myanmar has led to a significant increase in property purchases by Myanmar nationals in Thailand. As the civil war continues to devastate the economy and living conditions in Myanmar, many citizens are seeking refuge and investment opportunities in Thailand’s real estate market.
Key Takeaways
- Tripling Sales: Sales of condominiums to Myanmar nationals in Thailand have tripled in the first nine months of 2024 compared to the previous year.
- Economic Turmoil: Myanmar’s economy is in turmoil following a military coup in 2021, leading to a devaluation of its currency and rising prices of essentials.
- Investment Shift: Wealthy Myanmar citizens are increasingly investing in Thai properties to secure their assets and avoid the instability at home.
Surge In Property Purchases
According to the Real Estate Information Centre (REIC), over 1,000 condominium units worth approximately 5.46 billion baht (around US$158 million) were sold to Myanmar nationals from January to September 2024. This surge has made Myanmar buyers the second-largest group of foreign property purchasers in Thailand, following Chinese investors.
The REIC’s acting director-general, Kamonpop Veerapala, noted that during times of conflict, Thailand often becomes a refuge for foreign investors seeking stability.
Economic Context
Myanmar has been grappling with severe political and economic instability since the military coup in February 2021, which ended a decade of democratic reforms. The ongoing violence has led to a significant decline in the economy, with the World Bank projecting a mere 1% growth for the current fiscal year. The kyat, Myanmar’s currency, has plummeted, exacerbating the economic crisis and driving citizens to seek safer investment options abroad.
Property Preferences
Wealthy Myanmar nationals are primarily purchasing larger, upscale properties, particularly condominiums sized 50 square metres and above. Many are looking for properties priced between US$145,000 and US$350,000, with popular locations including Bangkok and the northern province of Chiang Mai.
Changing Dynamics In The Market
The influx of Myanmar buyers comes at a time when Thailand’s real estate market is experiencing a downturn from other foreign investors. Sales to Chinese and Russian buyers have decreased by 12% and 16.8%, respectively, as these investors withdraw due to their own economic challenges.
Despite the overall sluggishness in the market, the REIC reported a 65% increase in property investments from Myanmar nationals in the July to September period of 2024.
Future Outlook
As the situation in Myanmar continues to deteriorate, it is expected that more citizens will seek refuge and investment opportunities in Thailand. The REIC forecasts a slight decline in overall unit sales in Thailand’s real estate market by 0.6% in 2024, but anticipates a gradual recovery in 2025.
The trend of Myanmar nationals purchasing properties in Thailand reflects a broader pattern of seeking stability amidst chaos, highlighting the interconnectedness of regional economies and the impact of political unrest on investment behaviours.
Sources
- Bangkok Post – Conflict in Myanmar sparks surge in Thai property purchases, Bangkok Post.
- Conflict in Myanmar sparks surge in Thai property purchases | The Straits Times, The Straits Times.
- Wealthy Myanmar citizens buy Thai property to seek refuge from civil war, Nation Thailand.
