Chinese real estate investors who were once the top buyers of high-end condos and apartments in Thailand are now cutting back due to an economic downturn and real estate crisis in China.
Key Takeaways
- Chinese real estate investors, who were previously major players in Thailand’s luxury condo and apartment sector, are now reducing their investments due to economic downturn and real estate crisis in China.
- Traditional English-speaking countries, like Australia, Canada, the U.K., and the U.S., have become more attractive to Chinese buyers for real estate investments, surpassing Thailand in popularity.
- Vietnam, unlike Thailand, is less reliant on Chinese investors and has seen steady investment from Chinese buyers in apartments, particularly in major cities like Hanoi and Ho Chi Minh.
Thailand, which was previously the number one destination for Chinese buyers, has now dropped to fifth place, with Australia, Canada, the UK, and the US taking the top spots. Chinese buyers are now purchasing homes in Australia for their own use or to become new Australian citizens.
“This year, Thailand is no longer the number one destination for Chinese buyers like it was in earlier years,” Ansari said via email. “Instead, it is fifth, and the top four destinations are all the traditional English-speaking countries with prestigious educational sectors.”
Kashif Ansari, co-founder and CEO of Juwai IQI Group quoted by VOA
In recent years, Thailand has been a popular destination for Chinese investors looking to purchase residential properties. According to a report by a real estate firm, Thailand was the most desired country for Chinese buyers between 2018 and 2021. However, in 2022, Thailand dropped to fourth place and in the first half of 2023, it fell further to fifth place.
China’s economic problems, including high youth unemployment, declining exports, and a real estate crisis, have led to concerns about stagnation in its economic growth.
As a result, Chinese buyers are hesitating with investments in Thailand, and deals now take months to close. The long-term impact will depend on the actions of Chinese investors and how Southeast Asian states manage the fallout.
Read more : Chinese Investors, Pinched at Home, Buy Less Property in Thailand (voanews.com)