16/11/2023
PROPERTY - Foreigners purchased 10,703 condominium units, amounting to 52.3 billion baht, in the first nine months of 2023. This reflects a year-on-year increase of 37.6% and 31.6%, respectively, according to the Real Estate Information Center.
Following the general elections in Thailand on May 14th, a period of market observation by potential buyers was noted. This cautious approach led to a noticeable inventory of unsold condominiums and newly built homes remaining on the market.
The real estate sector, which contributes approximately 10% to the Gross Domestic Product (GDP) of Thailand, has shifted towards being a domain of prudent investment post-election, rather than a sector for immediate acquisitions.
However, three months subsequent to the elections, the Thai real estate market not only regained its pre-election momentum but also exhibited further growth. Foreign property purchases escalated by over 30% in the first nine months of 2023, compared to the same period in the previous year.
Data from the real estate information center reveals that foreign buyers have acquired a total of 10,703 condominium units, representing an investment totality of 52.3 billion baht.
In an analysis of foreign investment trends in the first nine months of 2023:
1. Chinese investors lead the market, acquiring 4,991 units valued at approximately 24.7 billion baht, averaging around 5 million baht per unit.
2. Russian investors, while second to their Chinese counterparts, show a noticeable disparity, purchasing 962 units for a total of 3.4 billion baht, with an average unit cost of 3.6 million baht.
3. American investors, consistently robust participants in the market, rank third with 422 units acquired, amounting to 2.1 billion baht, averaging around 5 million baht per unit.
4. Taiwanese investors hold the fourth position, with 372 units purchased for 1.8 billion baht, averaging 4.9 million baht per unit.
5. British investors, known for their strategic market engagement, are in fifth place, also acquiring 372 units with a total investment of 1.8 billion baht, averaging similarly at 4.9 million baht per unit.
Myanmar investors, marking a significant entry into the Thai market, occupy the seventh rank. They have purchased 347 units, totaling an investment of 2.3 billion baht, with an average unit value of 6.5 million baht, indicating a preference for high-value properties.
Key areas attracting foreign investment in Thailand include Bangkok, Chonburi, Chiang Mai, Phuket, Prachuap Khiri Khan (Hua Hin), and Rayong.
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