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Thailand’s Property Market attracts Influx of Chinese Investors

Monday , 30 October 2017 ARTICLES

  • Great properties at affordable prices


  • Thai society already consists of considerable Chinese demographic


  • Attractive ROIs



Regional real estate investors, particularly Chinese investors, have been shifting their attention to Thailand for reasons that go beyond sheer proximity. The country offers viable investment opportunities for foreigners, many of them being priced out of their own country’s property market due to skyrocketing prices. We explore the attraction of the nation when it comes to China, highlighting the different reasons why many look to Thailand for viable opportunities within the property sector:


Overall affordability

Aside from its close proximity to Mainland China (which is a huge factor in its own), Thailand offers this group an opportunity to acquire city dwellings at considerably lower costs. This is further sweetened by the fact that Thailand has less complicated sales-purchase conditions as well as lower down payment amounts and property transfer fees.


The country’s cost of living is also relatively low, with many Chinese attracted to its beautiful beaches, vibrant nightlife, friendly locals, and world-class yet affordable medical facilities, all luxuries that the average middle-class Chinese would not be able to afford back home.


Large Chinese community

Thailand is made up of one of the world’s largest Chinese diaspora outside of China, with its culture and cuisine already offering considerable similarities, making it easier for Mainland Chinese to assimilate while there. In terms of raw figures, ethnic Chinese make up 10 to 14 percent of the population of Thailand, or around 6 million to 9 million people.


This influx has also paved the way for a host of Chinese businesses in the form of restaurants, confectioneries, beauty salons and retail stores, all catering predominantly to migrants from China. One example of this is in Huai Khwang, where the Chinese Embassy is located.


Attractive returns on investments

From an investor’s viewpoint, Thailand’s property market offers Chinese with dramatically higher returns than they are used to back home, especially in the rental market.


Thai properties enjoy anywhere between 5-8 % in rental yields per annum, with China’s overall average often touching close to 2% - making it an attractive destination for them to invest in. On top of that, Thailand also offers investors freehold ownership of condominiums while China works predominantly on the leasehold model. This provides buyers with an added incentive for obvious reasons.

All this offers plausible reasons behind the fact that Chinese investors are ranked third (during the first half of the year) in terms of property purchase inquiries in Thailand - compared to the sixth spot it held last year. These figures are only set to rise over the next decade with more Chinese investments boosting the Thai economy considerably, especially in the property sector.

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