Chinese buyers' growing interest in Thai real estate is attracting the attention of local developers feeling the impact of the stagnant property market in Thailand.
Huang Xiaodan, founder and chief executive of Chinese real estate website Uoolu.com, says Thailand has become more popular among the Chinese, whose appetite for overseas properties has been growing, especially since late last year.
In 2016, Thailand ranked top 10 destinations among Chinese property buyers after the US, Britain, Australia, Japan and other developed countries. It also ranked the top three in Asia in the second quarter of this year while the other two were Japan and Singapore.
"Thai property is cheaper, with prices about a third of China's," says Mr Huang. "Thailand's visa on arrival policy for the Chinese is also making it very convenient to have holidays here."
He says non-stop flights, with only a few hours of flying time from some cities in China to Bangkok and Phuket, also help. Thailand's stable weather is good for holiday year-round, made even more attractive by the friendly Thais.
According to Juwai.com, one of the largest Chinese international property portals, Thailand ranked sixth for the number of Chinese real estate buying inquiries made last year.
"In the first half of 2017, it moved up to third place," Juwai.com's chief of operations Sue Jong says.
"Thailand is becoming more popular among Chinese buyers as a result of a steady, year-round weather. It wasn't as noticeable in earlier years, but even back in 2014 people realised that Chinese buyers were playing a bigger role in the market."
Ms Jong says interest has bloomed into great numbers. The Chinese appreciates that Thailand is a close and approachable market, relatively affordable and offers an appealing lifestyle.
Retirement buyers love the high quality of life and low cost of living. They can also own a holiday home where they can visit for long weekends or rent out when they are not using it.
"Many buyers first visited Thailand as tourists," says Ms Jong. "We also see formerly under-represented buyers appearing in larger numbers. These are the upper middle-class Chinese who, perhaps, find homes in places like Australia too expensive to contemplate, but who can well afford to buy a home in Thailand."
According to Juwai.com's Southeast Asia Chinese Property Report, there are five reasons behind the escalating Chinese buyer interest in property in Southeast Asia.
The first is the growth in the number of Chinese travelling abroad.
The report cites Thailand as a perfect example. It is one of the most popular destinations for Chinese tourists. Last year the Chinese were the largest group of foreign visitors to Thailand, which has led to a spillover effect on its property market.
In the first half last year, Thailand was the number one investment destination in Asia and the fifth most-enquired global investment destination for Chinese property buyers on Juwai.com.
Chinese buyers are attracted by the lifestyle and cost of holiday and retirement homes in Thailand, with top cities like Bangkok, Pattaya and Phuket being their preferred choice.
Another reason is the excellent return on investment of overseas properties. Thailand ranked fourth with investment returns of 5.1%, after Indonesia (8.6%), the Philippines (7.5%) and Cambodia (5.3%), but ahead of Malaysia (4.6%).
There is also a surge in demand from China's ageing population, the power of huge Chinese diaspora and fast-growing access and connectivity convenience to Southeast Asia, the Juwai report says.
Mr Huang at Uoolu.com says the number of Chinese travellers shot up during the third quarter of 2016. From Jan 1, 2017 to today, the number of inquires about Thailand properties has already exceeded that for the whole of 2016.
In 2016, down payment for Thailand properties on Uoolu.com amounted to 480 million yuan (2.4 billion baht). In the first half of 2017, it reached 548 million yuan, and is set to increase to more than 1 billion yuan for 2017, he says.
A luxury condominium 98 Wireless developed by Sansiri Plc on Wireless Road, Bangkok.
Top destinations are Bangkok, Pattaya, Phuket and Chiang Mai. Bangkok and Pattaya are centres of economy, culture and entertainment while Phuket is the best place for holiday, he says.
"Chiang Mai is the best for retirement, and more elderly Chinese are choosing to spend the rest of their lives in the province," Mr Huang adds. In Bangkok, the top five locations for the Chinese are Siam Square, Asok, Thong Lor, Ekkamai and Phrom Phong.
The budget of most buyers is between 700,000 and 1.5 million yuan or about 3.5-7.5 million baht. These customers have an annual income of about 300,000-800,000 yuan.
"They are the upper middle-class young generation, aged below 39 years old," says Mr Huang. "Most of them have been to Thailand before and therefore familiar with the country."
To boost sales from Chinese buyers and attract more quality Chinese funds and customers, Mr Huang suggests mortgage facilitation with a steady loan ratio of 50-60%.
"Our Chinese customers generally have more than two properties in China. They have stable cash flow and diversification of income sources. They are also good at investment. If local banks can provide loans to them, it will be very good," he says.
He also suggests dedicated receptions teams for potential Chinese buyers to help with visits to property projects and information about the surrounding areas, and opening of bank accounts.
In the past few months, Uoolu.com has brought a lot of Chinese customers to local developers such as Ananda Development, Fragrant Group, Sansiri, Land and Houses, Siamese Asset and AP Thailand.
"Chinese customers like landmarks and projects that are easy to lease, such as those with convenient transport, and near schools, supermarkets and malls," says Mr Huang.
The projects should also provide furniture packages and after-sales rental management or come with a big discount.
Ms Jong of Juwai.com says Chinese buyers in Thailand are most often focused on investment and lifestyle goals. They feel that in Thailand they can buy a nice place in an attractive location, that they can rent it out, and which will gain value over time.
"In holiday destinations like Phuket, they love owning a little bit of paradise," she adds. Other top destinations Juwai is working with also include Pattaya and Bangkok.
The Bangkok Thonglor Condo on Soi Sukhumvit 55, is one of Land and Houses' luxury condominium projects.
In Bangkok, the top three destinations are Sathon, Sukhumvit and Bang Na. Two-thirds of Chinese buyers it works within Thailand are looking at property that costs up to US$250,000 (8.5 million baht).
"Some developers could do better by ensuring their staff have a better understanding of the Chinese buyer and their needs, by travelling to China to meet buyers there and by advertising their property more effectively in China."
"Developers should need to meet basic requirements in terms of floor plans, pricing and location of their project. We encourage them to have a partner in China that can reach out to buyers on their behalf," says Ms Jong.
Sorapoj Techakraisri, chief executive of SET-listed luxury developer Pace Development Corporation Plc, says demand from Chinese buyers for Thai properties is in all segments.
"We are talking with Thailand Privilege Card Co, the issuer of Thailand Elite Card, to offer a longer visa to attract Chinese market. This is the only request from Chinese high-net-worth individuals."
Next month Pace will have roadshows in Shanghai and Beijing to introduce The Ritz-Carlton Residences at MahaNakhon Tower and its luxury villa project MahaSamutr in Hua Hin.
"MahaNakhon is a landmark. The tower was ranked No.1 in China on Twitter when we had a lights and sounds show at the building last year," he says. "Branded with The Ritz-Carlton, the project will gain interest from rich Chinese."
An ad on Uoolu.com offers potential buyers travel tickets for two and cashback for group investment.