Expectations for Foreign Demand for Condos in Bangkok
Once restrictions relating to travel are eased as the pandemic subsides, it will be interesting to see where the foreign demand first arises from again in respect of buying condos in Bangkok.
Amongst foreigners buying in the city, Chinese buyers formed by far the largest percentage of buyers up until about the third quarter of 2019. The numbers of Chinese buyers had been dropping slightly over the course of last year, as the Trade War with the US and the slowing of China’s domestic economy stifled demand for overseas property purchases. Other foreign buyers were mainly from Europe and the UK, plus the US, and other Asian countries such as Singapore and India.
How will demand for condos resurrect itself?
Looking forward, having undertaken some research and looked at the source of initial enquiries coming through for condos in Bangkok, there are two ways to look at the next few months. Either there will be a gradual trickle of interest of purchasers returning to the condo market. Or there will be a sudden increase in enquiries given that people have not been able to look for condos in Bangkok for several months due to the travel restrictions and curtailment of visitors. In this sense, demand is “pent-up” and waiting to be released.
So far, in number terms, Thailand has been doing reasonably well in terms of infections, serious cases and deaths. If this trend continues, this can only be positive.
Furthermore, some of the overseas currencies, many after a major dip, are now slightly stronger against the Baht (GBP for example).
The key to resumption of condos sales
The key, though, to the recovery of buyer demand in Bangkok condos is two-fold. One, how and when will the Thai Government ease travel restrictions and what will be required for buyers and other visitors to get back into the country. Will visitors need a Certificate of Health and travel insurance? Will they need to quarantine or not?
And two, when will the Chinese Government start allowing people to start travelling overseas again? If this can be June or July, we may see a summer influx of potential condo buyers to Bangkok, as we see the likelihood of more and more Chinese wishing to invest in offshore property post-pandemic than before. Developers and real estate agents will, no doubt be watching this news very carefully to see when they should gear up their marketing promotions.
Potential buyers from the more severely affected European nations, plus UK and the US, will probably take longer to return as lockdowns are still in place. But you never know, they might be back by Oct or Nov for vacation and to buy a condo in Bangkok!