There is high demand for homes in Thailand among middle-income Chinese buyers because of the lower cost of real estate compared to Mainland China. Although the Chinese are keen on Thai real estate, they only account for a relatively small portion of the overall Thai market particularly in developments in holiday resorts that include Phuket and Chiang Mai.
In spite of the demand for Thai real estate, a decline in investments can be expected because of the capital controls imposed by Chinese authorities. On the other hand, a growing number of Chinese who cannot afford the high prices of real estate in the Mainland are looking at some Thai real estate. These buyers are not your typical rich ultra-rich but young and moderately wealthy Chinese.
Last year 27% of the visitors to Thailand came from China. They are so far the biggest group of tourists that became interested in the tropical paradise of Asia. They are also interested in investing because of the relatively low cost of Thai housing stock.
According to a recent survey on outbound Chinese investments, it was revealed that Thailand is 5th among the popular choices for real estate investment. Other Chinese investors prefer New Zealand and Hong Kong. A third of the respondents said that they have plans to buy additional Thai property in the next two years.
The problem however is the presence of strict capital controls that will continue until the Chinese government feels comfortable that the Chinese currency is no longer under any significant pressure to weaken.
Based on estimates, Chinese buyers only account for 5% of total real estate sales in Bangkok. Investments are higher by 10% to 20% in the holiday resorts of Phuket, Pattaya and Chiang Mai. The demand from Chinese buyers is pushing up the prices of real estate in Pattaya where 10% to15% of sales comes from Chinese buyers.
If you are searching for house for sale Pattaya, your best option is to work with a professional and honest real estate agent who will guide you through the process. It is not easy to find the perfect home in Pattaya but with the services of an expert, the process can be safe and efficient.