The allocation of the condo market in ’66, a return to the peak of ‘foreigners’ flocking to buy into a safe house. ‘Chinese’ still without shopping.
On November 24 at the Anoma Grand Ratchadamri Hotel, at the seminar “Allocating Condominium Business Strategies 2023” organized by the Thai Condominium Association.
Year 2023, the condo market is growing strongly in response to the economic recovery
Mr. Peerapong Jaroon-ek, President of the Thai Condominium Association He revealed that the general real estate market in 2023 will expand in line with the economic recovery. Which, based on the economic assessment, will grow at an average of 4.7%, but personally think it will reach 5% next year, the opening of the country will lead to 20 million tourists returning, creating more of employment in the tourism and service sectors. An important factor when buying a home
especially the condominium market it has a significant growth trend Due to the general economic recovery, the highest in four years of various factors such as the easing of the COVID-19 situation, the recovery of the tourism and service sector. Foreign investment and tourism from opening countries around the world. As a result, the overall purchasing power of consumers in the real estate market, as well as condos, has returned to growth in all segments.
Especially the price of 2-3 million baht will be strong next year. both in Bangkok Suburbs and big cities And tourist cities like Chiang Mai, Phuket, Hua Hin, Pattaya are now starting to see more Europeans buying condos. China after the opening of the country will be a positive factor for the market in the second quarter of 2023.
“Rising interest rates can affect the development of projects at some level. Interest rate cost increases by 1-2% if managed well. Property prices may not have to adjust prices. Regarding the relaxation of the LTV measure which continues until the end of 2022, it will affect second and third homes, including houses with prices over 10 million baht. It is an obstacle that causes many problems for real estate. By looking at the sale and transfer of ownership it will come back close to before the outbreak,” said Mr Peerapong.
Joel’s Lang reveals that “China” did the most shopping
Mrs Suphin Mechuchep, Executive Chairman of Joel’s Lang LaSalle (Thailand) Company Limited, spoke about the trend of the condominium market with foreign customers which is Oversupply Pre-Covid Condominium Market Entrepreneurs are starting to tap the brakes and turn to develop other segments such as retail to diversify revenue risks. In 2022, the supply began to increase at 770,000 units, which is expected in 2025 at 876,000 units, an increase of 13%, mainly in the mid-low market. and located in the CBD area The purchase is for investment. Buying, speculating, the market has gone bad since Covid.
“Condo transfers for 8 months are at 58,000 units, worth 1.5 billion baht. In this case, foreigners buy 10% or 5,800 units, worth 30,000 million baht or 20%, with the Chinese buying the most. The average price is 5 million baht / unit, which in the last 3 quarters is worth 15,000 million baht, followed by America, France, England, Myanmar, which will buy less units than China, but the price is higher, for example, Myanmar and Cambodia buy the price. The unit is more than 15 million baht, so we do not need to penetrate only Chinese customers. Be other nationalities, because the Thai condo market is still interesting for foreigners. Especially large rooms that foreigners are very interested in,” said Mrs Suphin.
CBRE notes that “Thailand” has the potential to attract foreigners.
Ms Atitaya Kasemlawan, Head of Residential Projects Trading Division of CBRE (Thailand) Co, Ltd, said that Thailand has many factors that attract foreign investors, such as low cost of living, government policies, service and hospitality. infrastructure and facilities food and culture Attractions and competitive real estate prices
At the same time, there are external factors such as the slowing global financial crisis. political conflict People starting to look for real estate outside the country is a factor in buying real estate in Thailand. global covid outbreaks make people want to find a second home Including money, etc.
“Thailand’s real estate prices are still competitive compared to the three countries, for example, Hong Kong is five times more expensive than Thailand, Singapore three times more expensive, and Shanghai more than twice as long ,” said Ms. Aditya.
Popular to buy as a safe house
Ms. Aditya said Since Saudi Arabia opened the country More and more Saudi tourists have started coming in. And come to buy real estate, most of them are in the luxury market So, it can be seen that Thailand still has a bright future for foreign customers. There are supporting factors: 1. Thailand has the potential to attract foreigners to buy condos. Which holds 49% 2. Chinese customers are still number 1 now and in the future after the opening of the country next year. I believe that Chinese customers will definitely return. 3. European customers began to return 4. Americans, Myanmar, Saudi Arabia, Canada, Singapore began to enter more after the opening of the country. 5. Geopolitical uncertainty There will be more demand for buying a second home to be a safe house for foreigners. 6. Thailand still has a bright future from foreign customers
Knight Frank reveals statistics of foreigners buying Thai real estate
Mr. said Nattha Kahapana, managing director of Knight Frank (Thailand) Co, Ltd, that the statistics of foreign tourists who traveled to Thailand from 2016-2020 are in the top 5, ranking first in China at an average of about 10 per year. people, followed by Malaysia, Korea, Lao PDR and Japan. In 2022, the top 5 incoming tourists are Malaysia, India, Laos, Singapore, Vietnam.
For countries that invest in buying condominiums and own the most in Thailand, in the top 3 are China 27,735 units, Russia 2,467 units and America 1,262 units.
while foreign residents are distributed in zones such as Sukhumvit, Phrom Phong, Thonglor and Ekamai, Japan, Europe, England and America, Nana-Asoke area People from the Middle East, Ratchadapisek, Huai Khwang, Rama 9 are Chinese and Korea. and the Silom-Satthorn area in Europeans, Australians and Singaporeans.
for condominium unit ownership After the COVID crisis, Bangkok is the first number, followed by Chonburi, Phuket, Samut Prakan, Chiang Mai. Prachuap Khiri Khan, Pathum Thani, Phetchaburi, Rayong and Nonthaburi, and the main target countries are China, Russia, America, England and Germany.
Landlord China reveals that Thailand is number one in the heart.
Mr Ke Jia Teo, managing director of Harvey Land Co, Ltd, a condominium developer in Thailand, said that China is expected to open up the country by the middle of 2023. bringing more Chinese customers to buy real estate in Thailand Because Thailand is also is the first country that Chinese people are interested in and looking for to buy houses. Because the Thai people are friendly and the houses are freehold type (outright purchase), with the Chinese wanting to buy it as a second home, third house, and they would like more loan assistance, such as 50%, including long term visa