Reports have indicated that the Thai real estate market in 2023 witnessed a significant increase in condominium transactions by foreigners, with a total of 49,250 units sold from developers’ projects.
Data notably showed that foreign nationals accounted for 5,036 units or 10.2% of all condo sales, totaling a value of 31.601 billion baht, or 17.9% of the total sales value, marking a new high for the market.
According to Sopon Pornchokchai, a property valuer and real estate researcher in the ASEAN Region, Africa, and South America, the activity of foreign condo purchases reflects the stability and attractiveness of the Thai real estate market.
It also indicates the desire of foreigners to reside and invest in Thailand, with the average price of condos sold in 2023 reaching 6.27 million baht per unit, showing a preference for high-priced units among foreigners.
Bangkok and its vicinity have been particularly popular among foreign buyers, with a preference for units priced between 10 and 20 million baht. This price range accounted for 28.2% of the units and 40.7% of the total sales value. Sopon said Central Business District areas received the highest interest from foreign nationals.
The trend of foreign condo purchases in Thailand has evolved following the COVID-19 situation. The market slowed during the outbreak but recovered and grew significantly afterward, reflecting the returning confidence of foreign investors in the Thai real estate market.
Sopon also opined that encouraging more property purchases by foreigners could be a policy to stimulate the Thai economy. He suggested the government define areas where foreigners are allowed to buy to mitigate security concerns and potential conflicts between Thai citizens and foreign property owners.
He further stated that the administration should consider new policies and approaches to regulate and promote real estate transactions by foreigners in Thailand. This would help the market grow sustainably and benefit the Thai economy while preventing potential issues arising from such liberalization. (NNT)
