China pullback leads drop in Thailand’s foreign condo demand

CHINESE buyers are retreating from Thailand’s condominium market, weakening a source of demand that developers increasingly rely on as heavily indebted Thai households struggle to secure mortgages.

Foreign buyers took ownership of 6,533 units from January through June, down 8.8 per cent from a year earlier, according to the Real Estate Information Center (REIC). The value of transfers fell 1.5 per cent to 28.3 billion baht (US$860 million).

Chinese buyers, traditionally the largest foreign purchasers of Thai condos, cut spending by 27.7 per cent, while purchases by Myanmar nationals fell 16.2 per cent.

Russian demand bucked the trend, surging 75.9 per cent, particularly in Phuket and Chonburi, home to the resort city of Pattaya.

The REIC expects the property market to remain “challenging” through 2027 as high household debt and tight mortgage access constrain domestic demand.

Condominiums in the tourist hubs of Phuket and Chonburi are among the few bright spots, it said. BLOOMBERG