The COVID-19 pandemic has prompted many Chinese citizens to accelerate their move to Thailand, with most of them wanting to buy ready-to-move apartments.
Kashif Ansari, CEO of Juwai IQI Group, a marketing firm in China, believes that Chinese buyers are in a hurry to move to Thailand right away, not wanting to invest in off-plan real estate and wait several years for the completion of construction. «If Chinese citizens are planning to move to Thailand, they want to do it right away, not in two years. They are pioneers».
The Chinese government's policy to combat COVID-19 is the main driving force behind this trend, and buyers felt the need for urgent action, which was not there before the pandemic.
According to Tritechi Tangmatitham, managing director of the development company Supalai Plc, listed on the SET exchange, Chinese buyers resumed buying apartments in Bangkok in early 2022 due to concerns about quarantine in their home country. «The Chinese bought large housing with the intention of moving into it as soon as necessary».
Tongchai Buskopan, co-CEO of Noble Development Plc, a real estate development company listed on the SET exchange, notes that Chinese buyers have switched their attention from investing to buying a second home. «Active buyers from China last year were looking for larger apartments because they wanted to move with their family. Chinese demand has also shifted to low-rise buildings».
Pongsethorn John Salakshana, CEO of Fin Development Co, confirms that Chinese agents are turning to his company to purchase real estate in recently completed projects. «More and more Chinese want to have a second home outside their country after experiencing the «zero COVID» policy. Now they need ready-to-move apartments, the number of which is already limited in the Bangkok condominium market due to the fact that all construction work has been stopped for three years».
Ansari predicts that over time, the Thai real estate market will face even greater demand from Chinese buyers who are ready to wait for the completion of construction. «Thai developers should allay the fears of buyers. The fact that the implementation of many development projects in China has stalled has forced buyers to be more cautious when considering off-plan projects in Thailand».
Ansari offers Thai development companies to explain to buyers that they are protected by law, as well as to show them their track records of successful projects.
According to statistics from Juwel IKEA Group, the top five countries that aroused the greatest interest from Chinese buyers in January 2023 included Australia, the United States, Canada, the United Kingdom and the United Arab Emirates. Thailand, a long-time favorite of Chinese buyers, did not get into this rating, but in December 2022 it took third place. Ansari notes that the current trend may change as more information is collected.
Although the top five countries in the January ranking have introduced new COVID measures for arrivals from China, Ansari does not believe that the testing requirements will have a significant impact on Chinese travelers. «The requirements are insignificant, and they are easy to fulfill. A more serious problem is the capacity of airlines and the high cost of flights».