Thailand is one of the biggest beneficiaries of investment from China, both individual and corporate, resulting in many a condo unit being open for Bangkok property rental, as investors opt not to move in, and, instead, make a profit.
According to research from the Siam Commercial Bank IEC, Chinese investors expanded their property market investments outside of the Mainland over Bt1 trillion in 2015, which is a whopping 82% increase from 2012, which saw a total investment value of Bt170 billion.
In Thailand, during the first year of Chinese investment, the Chinese invested only 0.2% of their total overseas investment. Over the years, their primary locations for investing in Thai property projects became Bangkok, Chonburi, Chiang Mai, Phuket, and the Surat Thani province.
According to the latest survey by Juwai.com, a Chinese trade property website, Thailand ranks 4th among all the property bought by Chinese investors. In 2018, their investment value in Thailand’s property market was recorded at US$2.3 billion/Bt73.6 billion, for about 15,000 condo units.
Chinese investment in Thailand saw a return averaging 6-10% when condo units are opened for Bangkok property rental, according to reports from the property firm, CBRE.
Most Chinese invest in condo units for rental, instead of moving into the property themselves, as they prefer the business opportunity to generate income from rental from their investment, according to a property expert.
The market trend is for property management for rental, which grants entry to the Thailand property market by supporting demand from investors who need to gain income from their asset.
Seeing a business opportunity, startup firm Hostmaker, an award-winning home rentals management company from Europe, set foot in Thailand in November 2018. According to Hostmaker Thailand’s Assistant General Manager ParuethaiPanjaboon, the company now has 120 condo units in Bangkok.
She says that the demand for rental averages sit between one and three months, mainly from people doing business in Thailand and other ASEAN countries. For the Thai real-estate industry, there’s an oversupply of properties that doesn’t balance with demand, especially in the capital. However, as the sharing economy continue to grow, the industry is starting to see opportunities, and so do visitors to the country.