By The Straits Times | Created at 2024-11-20 08:47:52 | Updated at 2024-11-21 15:32:07
1 day ago
BANGKOK – Buyers from Myanmar have been snapping up condominiums in Bangkok and other parts of Thailand as they look to move money out of an economy battered by civil war, providing a bright spark for the kingdom’s sluggish real estate market.
Thai condominium unit sales to Myanmar nationals in the first nine months of 2024 tripled from the same period in 2023, according to the Real Estate Information Centre (REIC), making them the second-largest group of foreign buyers after those from China.
“Whenever there is conflict in other countries, foreigners turn to Thailand looking for peace,” REIC acting director-general Kamonpop Veerapala told reporters this week.
From January to September, over 1,000 units worth 5.46 billion baht (S$211 million) were sold to Myanmar nationals, REIC data showed.
Myanmar, which shares a 2,500km border with Thailand, has been in political and economic turmoil since a 2021 military coup ended a decade of tentative democratic and economic reform, sparking nationwide violence.
Its currency is also in free fall, pushing up prices of essentials, and the economy is expected to grow at just one per cent in the current fiscal year, according to the World Bank.
In an attempt to stabilise the volatile kyat, the junta in June charged five people over the sale of Thai condominiums.
Foreign property purchases have not previously been illegal in Myanmar, but the junta is now attempting to restrict foreign exchange flows.
Purchases of Thai properties from Myanmar picked up in 2022, and have since risen as fighting has intensified across the country.
Despite the crackdown, investments have kept pouring in, rising 65 per cent on a quarterly basis in the July-September period, according to REIC data.
Some wealthy Myanmar nationals were purchasing Thai properties to avoid keeping money in their war-torn home country, one real estate agent who asked not to be identified over security fears told Reuters.
The agent said these investors were buying properties priced between US$145,000 (S$194,000) and US$350,000, adding the northern province of Chiang Mai was another popular destination.
For others, their Thai properties are now home.
“(The) situation in Myanmar will get worse and I have no plans to return,” said a 30-year-old consultant from Myanmar who asked not to be identified for fear of retribution from the Myanmar authorities.
The woman, who has worked in Thailand for two years, said she recently bought an apartment for about US$29,000 on the outskirts of Bangkok.
The surge in Myanmar buyers comes as Thailand faces a slump from other foreign investors. Sales to Chinese and Russian buyers – the major players in recent years – were down 12 per cent and 16.8 per cent, respectively, according to REIC.
Mr Kamonpop said those investors have withdrawn due to economic woes in their own countries.
Thailand’s real estate market is flagging due to overall slow economic growth, with REIC forecasting that unit sales will drop 0.6 per cent in 2024 before gradually picking up in 2025. REUTERS
