Increase in the flow of Chinese tourists
The introduction of the "free visa" policy for foreigners is part of the Thai government's measures to stimulate the economy. According to experts, this initiative will have a positive impact on the country's tourism industry.
In particular, an influx of tourists from China is expected. Thus, in the first half of 2023, Thailand was visited by 1.85 million Chinese travelers, and by the end of the year their number may exceed 5 million people.
Despite the slowdown in the Chinese real estate market, Chinese interest in investing in Thai real estate remains. However, the convenience of doing business plays a decisive role for them.
High share of foreigners in the condominium market
Foreign buyers traditionally make up a significant part of the demand in the Thai condominium market. It is estimated that they account for 10-15% of transactions each year.
This is an important factor for developers, as Thai buyers alone may not be enough to sustain the market in the long term.
Leadership of Chinese buyers
According to data for the first half of 2023, the Chinese continue to dominate among foreign buyers of Thai real estate. They accounted for about 47% of all transactions involving foreigners.
This trend has continued over the past few years amid the constraints of the real estate market in China itself. In addition, some of the Chinese consider Thailand as a place to do business, study children or buy a home.
Despite restrictions on the export of capital from China, Chinese citizens are finding ways to invest in Thai real estate, including using passports of other countries.
The introduction of a "free visa" policy has the potential to further stimulate the flow of Chinese tourists and investors to Thailand. This will help maintain a steady demand in the condominium market.