Business
Thai Condos Sold For B15bn To Chinese Buyers Between Jan-Aug
(CTN NEWS) – The Chinese topped the list of foreign condominium buyers in Thailand in the first eight months, purchasing a property worth 15 billion baht.
According to Suphin Mechuchep, chairperson of Jones Lang LaSalle (Thailand), a professional services company specializing in real estate, there are presently about 770,000 condo units available on the market.
By 2025, she predicts that number will increase by 14% to 876,000.
A total of 58,078 units worth 151 billion baht were transferred to purchasers during the first eight months of 2022.
Suphin Mechuchep, Chairperson Of Jones Lang LaSalle
During a real estate conference hosted at a Bangkok hotel on Thursday, she claimed that 10% of the purchasers were foreigners who reserved 5,800 apartments totalling 30 billion baht, with Chinese buyers accounting for 50% of the total value.
She added that the average cost of all Chinese-purchased properties was 5 million baht. “Most Chinese businesses wanted penthouses near the Chao Phraya River from 150 to 300 square metres,” she said.
Although buyers from the United States, France, Russia, Britain, Taiwan, Australia, India, Cambodia, and Myanmar also bought homes for a combined 15 billion baht.
She said that their overall number of purchases was less than that of Chinese buyers.
Luxury Penthouse On The Bank Of Chao Phraya River
During that time, Russian buyers made up most pool villa buyers, typically opting for three- to five-bedroom properties priced between 17 million and 35 million baht.
She added that Chinese purchasers bought after them in the same price range, demonstrating strong demand in this market area.
Ms. Suphin noted that due to an oversupply, developers have started to slow down the construction of new condominiums since 2019, with the majority concentrating instead on hotels, offices, and retail space.
“Before the Covid-19 incident, most developers were diversifying away from condos due to market uncertainty, particularly after the Bank of Thailand announced its reduced loan-to-value ratio (LTV) policies.
Which stopped speculation. After the lockdowns were implemented, the supply of condos increased, according to Ms. Suphin.
With apartments often situated on the outskirts of the inner city, most new condo debuts this year have been in the mid to low-priced class.
To turn their supply of luxury apartments into revenue, developers rapidly responded to the pandemic, says Ms. Suphin, by launching promotions in the 2020s in the Sukhumvit, Phloen Chit, Sathom, and Sahon neighbourhoods.
She continued that few new projects have been offered, despite the fact that high-end and premium condominiums have proven to be strong sellers over the previous three years.
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