Thailand's condominium sales to foreigners down 6% in Q2

Condominiums (condo) purchased by foreign buyers in Thailand fell 6% year-on-year in the second quarter of 2024 to 3,342 units, down 18% in value to THB 14.8 billion ($449 million), according to the Real Estate Information Centre, part of Thailand's Government Housing Bank.

The Southeast Asian country's condo sales are showing signs of slowing after a run-up driven by Chinese, Russian and other foreign buyers.

In the first half of this year, purchases by Chinese and Russian buyers decreased by 17% and 19%, respectively.

China accounts for more than half of the houses purchased by foreigners in Thailand, followed by Russia and Myanmar. Previously, Chinese citizens were seeking their second homes during the Covid-19 pandemic. Later, wealthy Chinese buyers set their sights on condominiums in Bangkok as an investment. However, that demand has diminished as China's economy has cooled down.

According to investment management firm Colliers, the number of new condominiums introduced to the market in Bangkok in the first six months of this year dropped by 44% to 8,674 units.

Sales to Thai buyers are also declining significantly amid rising household debt.

Insiders said real estate developers are shifting their focus toward selling off existing inventory.

A representative of a developer mentioned that low-cost condominiums in the suburbs are very difficult to sell.