Chinese investors are still spending big in Thailand’s property market. The country’s ‘teflon’ tourist reputation and uncertain national election outcomes are doing little subdue investor enthusiasm.
Two coups in a decade have done little to cool enthusiasm in Thai property. Tourists from Asia’s top economy continue to recognise Thailand as a top spot for holidays, and investment.
According to data Chinese real estate portal Juwai.com, Thailand remains a popular country when it comes to inquiries from potential real estate buyers. In 2018 the Thai market was the fourth most popular property investment market for Chinese buyers, as the Thai market climbed up from the sixth spot just two years before.
Thailand’s economy has been hurtling ahead since the 2014 military coup, reaching GDP growth each year in excess of 3% and, in 2017, averaged at nearly 4%. The World Bank is predicting growth to slow in 2019, mainly due to weaker global growth, Chinese/US trade wars and the fallout from Brexit.
Sansiri, one of Thailand’s biggest developers, set up an international business unit in 2014 after noting the interest from foreign buyers. Nanmanas Jiwattanakul, the company’s assistant executive VP of international business development, says that Chinese buyers make up 70%of Sansiri’s international sales.
“Foreign buyers have not been deterred by the country’s political limbo over the last five years as the Thai economy, business processes and policies have showed consistency and resilience despite numerous government changes.”
“And Thai property prices have roughly doubled in the last decade, so investors see the country as a good place to grow their wealth.”
Thailand was #4 for Chinese property investment in 2018 in the world, according to Juwai.com. With $2.3 billion coming in from Chinese sources the Land of Smiles ranks behind the big three – US ($30 billion), Hong Kong ($16 billion) and Australia ($14 billion.).
This article appeared in The Thaiger.