Despite the Chinese government's strict measures limiting citizens to transferring no more than $50,000 or approximately 1.6 million baht out of the country per year, observations by real estate consultancy JLL reveal that in the first half of this year, Chinese buyers from the mainland have emerged as the largest group of foreign condominium purchasers in Bangkok, accounting for about 50% of all foreign buyers.

          JLL reports that many Chinese buyers are employees of Chinese companies operating in Bangkok. This aligns with JLL's previous research report titled  ‘China12: China’s Cities Go Global’ , which indicated that Bangkok ranks as the 10th city globally for major Chinese companies establishing operations and the 3rd for office space leasing.

          Ms. Nontharapas Pornsinkhunanan, Head of Residential Business Services at JLL, stated, “The types of condos that Chinese workers in Bangkok prefer to buy are studio and one-bedroom units located in the Ratchada-Rama 9 area, priced between 1.5 million and 3 million baht. Generally, these Chinese buyers do not face issues with the currency transfer restrictions, partly because the prices are below the set ceiling. Additionally, some foreign banks and Thai financial institutions have policies to lend to foreigners wishing to purchase condos in Thailand, with various criteria for consideration, such as the duration of work permits for foreigners and the length of employment contracts in Thailand. These criteria may vary depending on the policies of each lending bank or financial institution.”

          In addition to purchasing for personal use, many Chinese buyers from the mainland are acquiring condominiums in Bangkok as investments. JLL also found that an increasing number of Chinese are interested in buying condos for use during their travels, aligning with Bangkok's status as one of the most popular cities for Chinese tourists worldwide. The same JLL research report indicates that Bangkok is among the top ten cities globally with the strongest connections to China, considering key variables such as capital, companies/organizations, people, infrastructure (transportation routes), and trade.

          The condominiums in Bangkok that are popular among Chinese buyers, whether for investment or as vacation accommodations, generally have price levels around 6 million baht in the Sukhumvit area. However, there is also a growing number of wealthy Chinese interested in purchasing luxury and super-luxury condominiums in the central business district of Bangkok and along the Chao Phraya River.

          “Some of these wealthy Chinese choose to buy luxury condos as prized possessions that bring pride to their owners,” Ms. Nontharapas stated.

          Regarding the Chinese government's measures to limit the amount of money citizens can transfer abroad for real estate purchases, Ms. Nontharapas noted that while these measures pose significant obstacles for Chinese buyers looking to purchase luxury condos in Bangkok or other cities worldwide, there are still various methods available for Chinese buyers, such as using funds already held abroad, particularly for Chinese businesspeople with income-generating businesses overseas.

          JLL's Thai Property Information Center revealed that at the end of the first quarter of this year, Bangkok had a total of approximately 524,000 completed condominium units, of which 46,000 were high-end units. In the last quarter, the average price of new condominiums across Bangkok increased by an average of 8.3% compared to the same quarter last year, but high-end condominiums saw only a slight average increase of 0.4% due to heightened competition as developers have increasingly focused on the upper market in recent years.

          In the first quarter of this year, several major real estate development companies purchased significant plots of land in prime central business district locations, including the sale of land from the British Embassy through a joint venture between Central Group and Hongkong Land for approximately 18.7 billion baht, marking the highest land transaction value ever. The purchase of land on Lang Suan Road by SC Asset at a price of 3.1 million baht per square wah, which is the highest price per square wah ever recorded. Additionally, other leading condominium developers have also acquired land in prime locations at lower values, such as Raimon Land, Magnolia Quality Development Corporation, and Ananda Development. Many of these plots are expected to be used for developing luxury and super-luxury condominium projects, with the potential for some projects to set new record high asking prices in Bangkok's condominium market.

Thank you for the information from www.jll.co.th