The Real Estate Information Center (REIC) of the Government Housing Bank has reported that the transfer of condominium ownership by foreigners in the second quarter of 2023 increased by 53.4%, and by 65.6% over the first six months compared to the same period in 2022. This surge is attributed to the full reopening of the country since the second half of 2022, allowing foreign homebuyers with prior purchase agreements to complete their ownership transfers. Additionally, there has been an increase in foreign buyers purchasing completed units from developers. The proportion of foreign condominium ownership transfers in the first half of 2023 rose to 14.7% from just 10.8% in 2022, while the value of these transfers increased to 24.5% from 20.5% in 2022.

Dr. Wichai Wiratthakhan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center revealed that in the first half of 2023 (January - June), the highest proportion of foreign condominium ownership transfers occurred in Chonburi at 43.4%, followed by Bangkok at 37.7%. Together, these two provinces accounted for 81.1% of the total units and value, contrasting with the previous years (2018 - 2022), where Bangkok held the top position with an average of 48.8% and Chonburi was second with 30.8%. In the first half of 2023, both provinces combined accounted for 81.1% and 85.4% of the national total, while Phuket ranked third at 6.3%.

“Chinese buyers remain the largest group in terms of both the number of units and the value of foreign condominium ownership transfers, accounting for 47.0% and 48.3%, respectively. Russian buyers ranked second with 9.6% and 7.3%. Interestingly, in this quarter, Myanmar nationals had the highest average unit price at 7.0 million baht, while Indian nationals had the largest average unit size at 89.8 square meters.”

Overview of Foreign Condominium Ownership Transfers in Q2 2023

In Q2 2023, the total number of condominium ownership transfers to foreigners nationwide was 3,563 units, an increase of 53.4%, with a total transfer value of 18,083 million baht, up 49.4% from the same period last year (YoY). Additionally, the area of condominium ownership transferred to foreigners was 166,303 square meters, reflecting a 52.0% increase YoY.

When compared to all types of ownership transfers nationwide, foreign condominium ownership transfers accounted for 13.6% of total real estate transfers, an increase from 9.3% in the same period last year. The value of foreign condominium ownership transfers constituted 24.6%, up from 18.7% last year, while the area of transferred condominiums to foreigners represented 18.3%, an increase from 12.7% last year. The proportions in Q2 2023 exceeded those prior to the COVID-19 pandemic (2018 - 2019), which averaged around 10.2% and 16.0%. This data indicates that foreign condominium buyers are purchasing higher-priced units compared to the previous year.

Regarding the ratio of new versus second-hand condominium ownership transfers, the ratio of new units to second-hand units was 61.9:38.1 in terms of the number of transfers, while the value ratio was 69.3:30.7. The area ratio for new to second-hand units was 55.1:44.9, with second-hand units seeing an increase in the number of units, value, and area compared to the previous quarter and the same quarter last year.

The most popular price range for foreign buyers was under 3.00 million baht, with 1,586 units transferred, accounting for 44.5% of the total units. This price range has been the most favored by foreign buyers since 2018. The next most popular ranges were 3.01 - 5.00 million baht (880 units, 24.7%), 5.01 - 7.50 million baht (567 units, 15.9%), over 10.00 million baht (321 units, 9.0%), and 7.51 - 10.00 million baht (209 units, 5.9%).

The preferred size of condominiums among foreign buyers was 31 - 60 square meters (1 - 2 bedrooms), with 1,909 units transferred, accounting for 53.6%. The next preferred size was units not exceeding 30 square meters (studio or 1 bedroom) with 1,037 units (29.1%). Following that were units sized 61 - 100 square meters (2 - 3 bedrooms) with 379 units (10.6%), and units over 100 square meters (3 bedrooms and above) with the least number at 238 units (6.7%). Since 2018, units sized up to 30 square meters and 31 - 60 square meters have been the most popular among foreign buyers, with a combined transfer proportion exceeding 80% each quarter.

Overview of Foreign Condominium Ownership Transfers in the First Half of 2023

Overall, in the first half of 2023, there were 7,338 units transferred, with a total value of 35,211 million baht. Among these, the highest value of transfers was to Chinese buyers, amounting to 16,992 million baht, representing 48.3% of the total value. The next four nationalities with the highest transfer values were Russia (2,556 million baht, 7.3%), the United States (1,289 million baht, 3.7%), the United Kingdom (1,287 million baht, 3.7%), and Myanmar (1,274 million baht, 3.6%). In terms of provinces, Chonburi ranked first with 43.4%, while Bangkok was second at 37.7% of foreign condominium ownership transfers.

Both provinces accounted for 81.1% of the total units and value, differing from the previous years (2018 - 2022), where Bangkok held the top position with an average of 48.8% and Chonburi was second with 30.8%. In the first half of 2023, both provinces combined accounted for 81.1% and 85.4% of the national total.

The top five provinces for foreign condominium ownership transfers were Chonburi, Bangkok, Phuket, Chiang Mai, and Prachuap Khiri Khan, with Chonburi leading at 3,183 units (43.4%) and Bangkok at 2,765 units (37.7%).

In terms of transfer value, the top five provinces were Bangkok, Chonburi, Phuket, Chiang Mai, and Prachuap Khiri Khan, with Bangkok at 20,233 million baht (57.5%) and Chonburi at 9,840 million baht (27.9%).

Chinese buyers continue to dominate the foreign condominium ownership transfers, with a total of 3,448 units transferred, representing 47.0% of the total units and a value of 16,992 million baht, accounting for 48.3% of the total value. The next four nationalities with the highest transfers were Russia (702 units, 9.6%, 2,556 million baht, 7.3%), the United States (293 units, 4.0%, 1,289 million baht, 3.7%), France (269 units, 3.7%, 1,127 million baht, 3.2%), and the United Kingdom (260 units, 3.5%, 1,287 million baht, 3.7%). Myanmar nationals had the highest average unit price at 7.0 million baht, while Indian nationals had the largest average unit size at 89.8 square meters.

“The overall picture of foreign condominium ownership transfers shows a clear recovery in terms of the number of units, value, and area, although still below the levels before the COVID-19 pandemic. It is noteworthy that these transfer figures reflect the majority of transactions that have occurred recently, demonstrating that the condominium sales have been successful, as evidenced by the continuous ownership transfers,” concluded the Acting Director of the Real Estate Information Center.