Chinese real estate investors are heading to Thailand in a big way – here’s why
Thailand has seen a significant increase in investor interest from China over the past year, according to Juwai.com, the Chinese international property portal.
The explanation for the soaring demand can be attributed to the travel bug.
“The rapid growth in tourism is contributing to growing Chinese real estate investment,” says Charles Pittar, CEO of Juwai.com, noting that Thailand ranked sixth among the list of countries that Chinese travelers would like to visit this year, above the likes of France and Singapore.
While enquiries for all the top Thai destinations have grown significantly over the past year, two destinations in particular stand out.
“The real battle over the past 12 months has been between Bangkok and Pattaya,” Pittar said. “Today, Pattaya property receives about twice as many buyer leads as Bangkok property.”
From the second quarter of 2015 through the second quarter of 2016, Pattaya climbed from 100 to 209 on the Juwai.com Chinese Purchasing Intent Index, which means it has attracted the most number of enquiries among all locations in Thailand.
The Thai capital soared from 100 to 296 on the index, which measures Chinese buyer interest in a given location by tracking their online property hunting activities.
It’s a remarkable turnaround in general for the kingdom, which has turned off Chinese buyers since political upheavals rocked the kingdom in 2014. The Chinese Purchasing Intent Index has reportedly grown more than twice for the top five Thai destinations over the past year.
So why are Chinese buyers so enamored with Thailand now?
To the Chinese, Pittar explains, Thailand is “a welcoming, nearby country with an attractive lifestyle at an affordable price point,” also noting that Chinese nationals represent 27 percent of all tourist visas in Thailand, a 60 percent increase from the previous year.
The low cost of living has also been a draw for China’s real estate buyers.
In a survey, Juwai.com found that buyers who have inquired about Thailand have a budget of USD241,000 on average, as opposed to the worldwide average budget of USD700,000.