Real Estate Information Center (REIC) of the Government Housing Bank has reported the situation of foreign ownership transfers of condominiums in the third quarter of 2023, revealing a total of 3,365 units valued at 17,048 million baht. The number of units increased by 0.4%, while the value slightly decreased by -2.0%. The cumulative total for the first nine months (January - September) stands at 10,703 units valued at 52,259 million baht, marking increases of 37.6% and 31.6% compared to the same period last year. The proportion of units and value of condominium purchases by foreigners has risen to 13.6% and 23.3%, respectively, up from 10.8% and 20.3% in the same period of 2022. The total area of condominium ownership transfers to foreigners nationwide reached 487,493 square meters, an increase of 35.6% from the previous year.

The distribution of condominium ownership transfers to foreigners is highest in Chonburi, accounting for 41.7%, while Bangkok ranks second with 37.5%. Together, these two provinces represent 79.2% of the total units and value. Notably, Chonburi has risen to the top position in 2023, contrasting with the period from 2018 to 2022 when Bangkok held the top spot with an average share of 48.8%, while Chonburi was second with an average of 30.8%. Phuket ranks third with a share of 6.4%, replacing Samut Prakan, which was third in the previous year.

Chinese buyers have accounted for the highest number of condominium ownership transfers nationwide in the first nine months, totaling 4,991 units or 46.6% of the total. Following them are Russian buyers with 962 units (9.0%), the United States with 422 units (3.9%), Taiwan with 378 units (3.5%), and France with 372 units (3.5%). The rankings for nationality correspond to both the number of units and the value of condominium ownership transfers, with the value for Chinese buyers reaching 24,740 million baht, representing 47.3% of the total value. Russian buyers follow with a value of 3,436 million baht (6.6%), while Myanmar buyers rank third with a value of 2,250 million baht (4.3%). The fourth and fifth positions are held by U.S. buyers with 2,102 million baht (4.0%) and Taiwanese buyers with 1,841 million baht (3.5%), respectively.

Dr. Wichai Viratakphan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center commented, “In the third quarter of 2023, we observed an average of approximately 3,500 units of condominium ownership transfers by foreigners per quarter, which is higher than the pre-COVID-19 pandemic average of about 3,300 units per quarter. This indicates that the situation of condominium ownership transfers by foreigners is returning to a positive and normal state. Data from the first nine months of this year shows that the areas where foreign buyers prefer to purchase condominiums remain major provinces and important tourist destinations, with Chinese and Russian buyers being significant groups in the country.

Additionally, buyers from the United States, European countries, and neighboring countries are also popular in purchasing condominiums in Thailand, aligning with the tourist groups that frequently visit Thailand. Therefore, the government's implementation of the "temporary visa-free" measures for tourists from China, Kazakhstan, India, and Taiwan is a significant factor that may help increase the opportunities for foreign buyers across all groups to purchase condominiums.

REIC also found that the price range of popular condominiums among foreigners is below 3.00 million baht, with 1,490 units transferred, accounting for 44.3% of the total units. This price level has been the most purchased by foreigners since 2018. The next price range is 3.01 - 5.00 million baht, with 843 units (25.1%), followed by 5.01 - 7.50 million baht with 507 units (15.1%), over 10.00 million baht with 346 units (10.3%), and the least being 7.51 - 10.00 million baht with 179 units (5.3%). Notably, buyers from Myanmar have the highest average price per unit at 6.5 million baht.

Condominium sizes of 31 - 60 square meters (1 - 2 bedrooms) are highly popular

The preferred condominium size among foreigners is 31 - 60 square meters (1 - 2 bedrooms), with 1,814 units transferred, accounting for 53.9% of the total units. The next preferred size is up to 30 square meters (studio or 1 bedroom) with 972 units (28.9%), followed by 61 - 100 square meters (2 - 3 bedrooms) with 392 units (11.6%), and over 100 square meters (3 bedrooms and above) with the least at 187 units (5.6%). Notably, condominiums sized up to 30 square meters and 31 - 60 square meters have been the most popular among foreigners since 2018. Buyers from the United Kingdom have the largest average size of transferred condominiums at 56.7 square meters.

Dr. Wichai noted that “Foreigners are purchasing a significant number of second-hand condominiums, with the ratio of new to second-hand condominium ownership transfers in the first nine months of 2023 being approximately 60:40. There has been an increase in the transfer of second-hand condominiums compared to the same period last year, while the value of transfers for new versus second-hand condominiums is approximately 69:31. The increasing proportion of second-hand condominium transfers by foreigners indicates that there is still demand for second-hand condominiums in prime locations or areas near city business centers, where supply is currently limited. Additionally, the prices of second-hand condominiums in these areas are lower than those of newly launched projects, making second-hand condominiums an attractive option for foreigners, especially Chinese buyers, which is a market that cannot be overlooked.”

“REIC believes that condominiums in Thailand remain in demand from foreign buyers, both for investment and as a second home in Thailand. The Thai condominium market is still open to foreign buyers, as the overall proportion of condominium ownership by foreigners is still low compared to the legal limit of 49% of the total area. Therefore, in 2024, if tourism expands more than this year, it is likely to positively impact the growth of foreign residential buyers and could help compensate for the purchasing power of Thais, which is still not fully recovered. This will be an important factor in driving the growth of the real estate sector as well,” Dr. Wichai concluded.