The condo market still has to rely on foreign demand as total transfers in the first quarter were mainly driven by foreign buyers, whose proportion rose to the highest in history, according to the Real Estate Information Center (REIC).
Vichai Viratkapan, acting director-general of REIC, said the number and value of condo units nationwide transferred to foreigners in the first quarter of 2024 rose by 4.3% and 5.2% year-on-year, respectively, to 3,938 units worth 18 billion baht.
In contrast, the total number and value of condo transfers nationwide dropped by 0.6% and 10.7%, respectively, to 23,531 units worth 63 billion baht.
"Local demand largely contracted due to weak purchasing power," he said. "This indicates that without foreign demand, overall condo transfers would have experienced a larger decline."
The proportion of condo transfers by foreigners also highlighted the situation, as the proportion of condo units transferred to this segment rose to 16.7%, up from 12.8% in the fourth quarter of last year, and 15.9% in the first quarter of the previous year.
At the same time, the proportion of condo value transferred to foreigners in the first quarter this year hit a record high as it increased to 28.6%, up from 26.1% in the fourth quarter of last year, and 24.3% in the first quarter of the previous year.
Since 2022, the number and value of condo units nationwide transferred to foreigners have been on the rise.
Last year, 14,449 units worth 73.1 billion baht were transferred, marking a growth of 25% and 23.5%, respectively, from 11,561 units worth 59.2 billion baht in 2022, soaring 41% and 49%.
"Key drivers were the tourism growth and uncertainties in some countries which attracted foreigners to buy properties in Thailand," said Mr Vichai. "Notably, buyers from Myanmar ranked second in the first quarter of 2024 for the first time."
Buyers from Myanmar were among the top 10 nationalities with the largest number and value of condo transfers nationwide in 2022 for the first time, and have continued to stay in the top 10 since then.
In 2022, they were in sixth place by number and third by value and climbed to fourth place in both categories in 2023.
Myanmar reached second place in the first quarter, succeeding Russians, who were ranked second for several years, following the Chinese.
"I recently visited Mae Sot district in Tak province and found that low-rise houses in the district had very good sales and all were purchased in cash in a Thai name," he said. "People in Myanmar are looking for a safe zone."
In the first quarter, Chinese buyers received condo transfers for 1,596 units worth 7.57 billion baht, followed by buyers from Myanmar with 392 units worth 2.2 billion baht and Russians with 295 units worth 924 million baht.
Americans came fourth with 164 units worth 919 million baht, followed by Taiwanese with 143 units worth 680 million baht, French with 129 units worth 550 million baht, Germans with 151 units worth 485 million baht and British with 108 units worth 373 million baht.
However, Indian buyers had the highest average value per unit and the largest average size per unit, at 6.5 million baht and 72.7 square metres, respectively.
Indians secured ninth place by value with 57 units worth 365 million baht, followed by Singaporeans with 57 units worth 335 million baht.
"Boosting foreign demand for condos may be necessary as local purchasing power remains weak," he said. "But we should think about affordability for Thai buyers too, if we do so."