The Real Estate Information Center (REIC) of the Government Housing Bank has released a report on the transfer of condominium ownership by foreigners in the first quarter of 2023, revealing that the number of transfers increased by 79.2%, with the value of transfers growing by 67.6%. Chonburi has now claimed the top spot for foreign condominium transfers for the first time, accounting for 42.4%, while Bangkok has dropped to second place with a share of 37.7%, after holding the championship from 2018 to 2022. The proportion of foreign condominium transfers has risen to 15.9% of the total units and 24.3% of the value, remaining concentrated in the price range of up to 3 million baht. Notably, buyers from “Myanmar” purchased at an average price of 6.5 million baht per unit, while “India” bought the largest average unit size at 77.7 square meters.

Dr. Wichai Wiratthakhan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center stated that the overall transfer of condominiums by foreigners is continuously recovering. The higher transfer numbers this quarter are attributed to the reopening of the country, particularly China, which positively impacts the tourism industry. This has allowed foreign buyers who had previously signed purchase agreements to return and complete their ownership transfers. Additionally, there is a segment of foreigners purchasing completed and second-hand condominiums, resulting in an increase in the proportion of foreign condominium ownership transfers to 15.9% from just 10.6% in 2022, and the value proportion has risen to 24.3% from 19.5% in 2022.

In total, the number of condominium ownership transfers by foreigners nationwide reached 3,775 units, an increase of 79.2% compared to the same period last year, marking a continuous rise since the second quarter of 2022.

The total value of condominium ownership transfers by foreigners nationwide amounted to 17.128 billion baht, up 67.6% from the same period last year, which is a consistently high value since the third quarter of 2022. The area transferred to foreigners nationwide totaled 168,664 square meters, an increase of 73.8% from the same period last year (YoY).

Second-hand condominiums are gaining a larger share in terms of units, value, and area

In the transfer of condominium ownership to foreigners, the ratio of new condominiums to second-hand condominiums in terms of units is 59:41, in terms of value is 70:30, and in terms of area is 53:47. Overall, the transfer of second-hand condominiums has increased in terms of units, value, and area. It is noted that foreigners may have a preference for second-hand condominiums in certain locations, such as inner-city areas or near business centers, where the supply is currently limited. Additionally, the prices of second-hand condominiums in these areas are lower than new projects, making them an attractive option for foreign buyers, particularly among Chinese, Russian, American, British, and German buyers, respectively.

Condos priced under 3 million baht remain popular among foreigners

Regarding the price levels of condominiums, it was found that the highest number of ownership transfers by foreigners in Q1 2023 occurred in the price range of up to 3 million baht, with 1,900 units transferred, valued at 3.431 billion baht, accounting for 50.3% of the total units transferred, although the value proportion was only 20.0%. It is noted that condominiums priced under 3 million baht have been the preferred price range for foreign buyers since 2018 to the present.

For the least popular price range among foreigners is 7.51 - 10.00 million baht, with the lowest number of units at only 203 units and a value of 1.729 billion baht, accounting for 5.4% and 10.1%, respectively.

Although condominiums priced over 10 million baht totaled 303 units, accounting for 8.0%, their transfer value reached a maximum of 5.475 billion baht, representing 32.0%.

Chinese, Russian, and American buyers lead in condominium ownership transfers

Chinese buyers continue to dominate condominium ownership transfers, with a total of 1,747 units transferred, accounting for a significant 46.3% of all units. The next four nationalities with the highest transfers are: Russia with 387 units (10.3%), the United States with 156 units (4.1%), the United Kingdom with 146 units (3.9%), and Germany with 131 units (3.5%), respectively.

In terms of the value of condominium ownership transfers nationwide to foreigners during the first three months of 2023 (January - March), it was found that the highest value was for Chinese buyers, amounting to 8.191 billion baht, representing 47.8% of the total value. The next four nationalities with the highest transfer values are: Russia with 1.364 billion baht (8.0%), the United Kingdom with 703 million baht (4.1%), the United States with 653 million baht (3.8%), and Germany with 611 million baht (3.6%), respectively.

If we look at the cumulative number of condominium ownership transfers from 2018 to 2022, the top five nationalities are China, Russia, the United States, the United Kingdom, and France. However, in the first three months of 2023, the fifth position has changed from France to Germany.

Myanmar has the highest average transfer value at 6.5 million baht, while India transfers the largest average units at 77.7 square meters

In the first quarter of 2023, the average area of condominiums transferred by foreigners was 44.7 square meters per unit, with an average value of 4.5 million baht per unit, or approximately 101,553 baht per square meter. Among the top ten nationalities with the highest number of ownership transfers, Myanmar has the highest average transfer value at 6.5 million baht per unit, while India has the largest average unit size at 77.7 square meters. In contrast, Chinese buyers, who account for the largest share of condominium transfers, have an average transfer value of 4.7 million baht per unit and an average unit size of 38.8 square meters.

The provinces with the highest number of condominium ownership transfers by foreigners are Chonburi, Bangkok, Chiang Mai, Phuket, and Prachuap Khiri Khan. Most of the transfers are concentrated in the top two provinces: Chonburi with 1,601 units (42.4%) and Bangkok with 1,423 units (37.7%). Together, these two provinces account for 80.1% of the total nationwide. Notably, Chonburi has surpassed Bangkok in the number of foreign condominium ownership transfers for the first time in Q1 2023.

In terms of the provinces with the highest value of condominium ownership transfers to foreigners, the top five are Bangkok, Chonburi, Phuket, Chiang Mai, and Prachuap Khiri Khan. The majority of the value is concentrated in the top two provinces: Bangkok with 9.976 billion baht (58.2%) and Chonburi with 4.557 billion baht (26.6%). Together, these two provinces account for 84.8% of the total nationwide. Looking back to 2018, Bangkok and Chonburi have consistently been the provinces with the highest value of condominium ownership transfers to foreigners, followed by popular tourist destinations like Phuket and Chiang Mai.