Jiaranai Entertainment Co, a Chinese media company in Thailand, has joined Chinese property agency Wo Ai Wo Jia Co to tap into growing Chinese demand for Thai condominiums, with a sales target of 5,000 units worth 25-30 billion baht by next year.
Rui Guo, managing director of Jiaranai Entertainment, said condo demand in Bangkok from Chinese buyers continues to grow, expanding from tier-1 cities like Beijing and Shanghai to tier-2 cities such as Chengdu and Hangzhou.
"The Chinese in tier-1 cities were the first group to buy overseas properties the past seven years," she said. "Those from tier-2 cities are a second wave. They are looking for condo units in Thailand to buy as residential prices in their hometowns have soared."
Founded six years ago, the company in mid-2016 started introducing Thai condos to Chinese buyers and set up subsidiary JRN Real Estate Co as a property agency.
JRN Real Estate Co has recorded 2.94 billion baht in sales from 29 condo projects, mainly from large developers including Land & Houses, Pruksa Real Estate, Quality Houses, Sena Development, King Wai Group, Pace Development Corporation and Risland.
"When buying a Thai condo, Chinese buyers consider the reliability of developers. They will see whether developers are able to transfer units as committed," said Ms Guo, 38, who is Beijing-born but has spent 30 years in Thailand. "Even if developers are on the top 10 list in Thailand, the Chinese will not buy from companies they have not heard of."
Other factors include stability of investment or attractiveness of the property and location, as well as potential price increases, she said.
About 80% of sales were from projects in Bangkok, followed by Pattaya, Chiang Mai and Phuket.
The top five locations for Chinese buyers comprised Thong Lor-Ekamai, Silom-Sathon, Phrom Phong, Rama IX and Bang Na. Unit prices ranged from 3-10 million baht with an average price of 5-6 million.
"As land is limited in inner Bangkok, Chinese interest in Bangkok condos is expanding to outer areas close to mass transit stations like Bang Na. This is a new trend," said Mrs Guo.
She suggested the government ease money transfers for Chinese buyers to better draw investment. Some Chinese who have business in Thailand needed to transfer money outbound and do it inbound to get a Thai property transfer.
Jiaranai yesterday signed a contract with Wo Ai Wo Jia Co, one of the largest property agencies in China, to introduce Thai condos to the Chinese market because Wo Ai Wo Jia has strong networks, with 3,500 stores throughout China.
Through the new partner, Jiaranai Entertainment aims to have 25-30 billion baht in sales from 5,000 condo units next year. Revenue from property agency businesses are expected to grow from 30% of total revenue this year to 50% in 2019.
Wang Peng, deputy general manager of overseas business department of Wo Ai Wo Jia Co, said Thai properties have started grabbing market share from the US, the largest overseas property market for Chinese.
"For Chinese buyers, property prices in Bangkok, Phuket and Pattaya are attractive for investment and require less time to travel to than the US," said Mr Peng.