Buyers from Mainland China are seeing the appeal in a luxury home Phatthanakan, or a Phuket beach house, if the recent trend in purchases are any indication.
The Chinese buyers are moving into the Thai real estate market and buying a considerable amount of land, for both personal and investment reasons. These buyers are the ones that get priced out of the market in the larger Chinese cities, according to developers from Thailand.
Thailand’s sights and sounds have managed to appeal to Chinese visitors, who have made the country into a holiday favourite. Recent data shows that Chinese visitors are expected to make up around one third of the total tourist travel to Thailand, which sits at around 35M currently.
Sansiri Pcl., a Thai property developer, is one of many developers taking advantage of the Chinese interest in the country, with three new China offices set to open this year, in addition to its current Beijing branch. According to them, Thai real estate sales to Chinese buyers have been steadily going up over the past three years.
According to data from Sansiri, Chinese buyers only accounted for 15% of the company’s foreign buyers, which then doubled to almost 30% in 2016. Cobby Leathers, the company’s Head of International Business says that Mainland China is in a position to usurp Hong Kong as Sansiri’s lead foreignmarket.
Back in 2016, Thailand ranked 6th in the number of Chinese real estate buying inquiries, but rocketed up to 3rd during the first half of 2017, according to Chief of Operations Sue Jong, of Juwai.com, a major Chinese international property portal.
She adds that, with the appeal of residential projects like a luxury home Phatthanakan alongside the commercial ones, the under-represented market of the Chinese upper middle-class are also managing to gain traction.
According to Juwai.com, about 2/3rds of Chinese buyers are looking for real estate no more expensive than $250,000, and that, with the increase to prices in Chinese real estate, investing in Thailand was a better option than doing so in China.
Home prices in China experienced a considerable increase since the start of 2016, with the increases affecting the smaller cities in recent months after the government took steps to rein in prices in the larger cities.
Juwai.com says that Bangkok, as well as the seaside Phuket and Pattaya are the favourites for Chinese buyers.