Foreigners are buying up condominiums in Bangkok, contrary to Thai purchasing power.  After the COVID -19 pandemic (2020-2021 ), foreigners have returned to buy condominiums in the Bangkok Metropolitan Region (BMR) in large numbers, just like before COVID -19 , while Thailand's overall purchasing power has clearly declined.

 

Dr. Sopon Pornchokchai, President, Agency for Real Estate Affairs (www.area.co.th), revealed the results of the latest survey of the housing market in Bangkok up to the end of 2024. It was found that in 2024, foreigners bought 5,748 condominium units out of a total of 31,897 condominium units sold by land development companies (excluding second-hand condominiums), or it could be said that 18% of all new condominiums sold in 2024 were purchased by foreigners.

 

In 2019, foreigners bought 6,557 new condominium units . However, when the COVID -19 pandemic occurred in 2020, foreigners bought fewer units, leaving only 1,017 units. In 2021, the situation did not improve. The number of condominiums purchased by foreigners increased slightly to 1,243 units. However, in 2022, the situation clearly recovered. Foreigners bought 4,203 condominium units, and in 2023, it increased to 5,036 units. In 2024, there were 5,748 units.

 

Although the number of condo units purchased by foreigners in 2024 (5,748 units) was still less than the number of condo units purchased by foreigners in 2019 (6,557 units), the proportion of condo units purchased by foreigners has increased. In 2019 , foreigners purchased approximately 12% of all condo units sold in Bangkok, while in 2024, foreigners purchased 18% of all condo units sold.   Foreigners purchased more; whereas Thais themselves bought less. It can be seen that in 2022, 51,093 condo units were traded, but decreased slightly to 49,250 units. In 2024, only 31,897 condo units were sold.

 

Foreigners' Purchase of Condominiums in the Bangkok Metropolitan Region (BMR) 2019-2024
Year	2019	2020	2021	2022	2023	2024
Total number of units purchased	54,303	28,947	28,973	51,093	49,250	31,897
Number purchased by foreigners	6,557	1,017	1,243	4,203	5,036	5,748
% Number of units purchased by foreigners	12%	4%	4%	8%	10%	18%
Total value (million baht)	209,254	95,791	112,295	183,908	176,730	146,784
Value purchased by foreigners (million baht)	30,516	3,378	6,057	20,364	31,601	39,640
% Value purchased by foreigners	15%	4%	5%	11%	18%	27%
Price/unit (million baht)	4.7	3.3	4.9	4.8	6.3	6.9
Total price/unit (million baht)	3.853	3.309	3.876	3.599	3.588	4.602
Foreign purchase price/unit (million baht)	4.654	3.321	4.873	4.845	6.275	6.896
% Foreign purchase price higher than normal	20.80%	0.40%	25.70%	34.60%	74.90%	49.90%
Agency for Real Estate Affairs (www.area.co.th), February 2025

 

In terms of the value of condominiums sold, it was found that the value sold in 2019 was as high as 209,254 million baht and decreased significantly in 2020 and 2021. In 2022, it gradually recovered and slowed down in 2023. In particular, in 2024 , the value of condominiums sold decreased to only 146,784 million baht, or 30% lower than in 2019. This shows that the housing market, especially condominiums in Bangkok, has declined significantly at the moment. However, it appears that the value of condominiums purchased by foreigners has increased. In 2019, foreigners bought a total value of 30,516 million baht, while in 2024, they bought a value of 39,640 million baht, or an increase of 30%. This shows that foreigners are flocking to buy condominiums in Thailand more clearly.

 

It is probably a misinterpretation that other data centers have reported that foreigners are buying fewer condominiums in Bangkok because they are using data on condo transfers. This data may cause confusion and distraction because condominiums that are being transferred today may have been reserved for 2-4 years ago, but were only completed and transferred today. Condominiums that were reserved for the past 2-4 years were during the COVID -19 period , when there were fewer buyers.   Therefore, the correct data analysis must use the sales survey data from the Thai Real Estate Research and Valuation Center, Agency for Real Estate Affairs Co., Ltd.

 

Foreigners buy condominiums at prices higher than the general average. For example, in 2024, foreigners bought condominiums at a price of 6.896 million baht, with 37% buying at prices not exceeding 5 million baht, while the average price of all condominiums sold was only 4.602 million baht. Only in 2020 did the prices that foreigners bought and those that the general public bought be very similar, because in that year there was almost no direct purchasing power from abroad. Instead, it may have been the purchasing power of foreigners already living in Thailand, so they bought at prices close to those that Thais bought.

 

Even though foreigners buy condominiums in Bangkok and its vicinity at prices higher than Thailand, it is still not much higher. In the case of Malaysia, it is stipulated that foreigners who buy condominiums in Kuala Lumpur must be priced at no less than 2 million ringgit or 16 million baht. In Indonesia, it is stipulated that they must be priced at no less than 10 million baht. Thailand should set a minimum price that foreigners can buy so that foreigners do not compete with Thais who are less financially qualified to buy condominiums. Or Thailand could set a minimum price similar to Australia, which allows foreigners to buy only new houses and not second-hand houses, so that Australians do not lose out.

 

Four main locations where foreigners buy condominiums in the Bangkok Metropolitan Region (BMR) in 2024
Location Code	F	G	H	I
Location name:	Ratchada-Lat Phrao	On Nut-Suvarnabhumi	Bang Na-Theparak	City Centre
Total sales	2,907	1,847	3,636	8,216
Number of foreign purchases	1,974	536	486	2,159
% of foreign purchases	67.90%	29.00%	13.40%	26.30%
Total sales value (million baht)	11,523	4,890	10,687	80,221
Foreign purchase value (million baht)	8,452	2,445	1,620	25,140
% Value purchased by foreigners	73.30%	50.00%	15.20%	31.30%
Agency for Real Estate Affairs (www.area.co.th), February 2025

 

The locations where foreigners bought the most were Location F Ratchada - Lat Phrao, Location G On Nut - Suvarnabhumi, Location H Bang Na - Theparak, and Location I in the city center. It was found that

 

No. 1: Location I, city center, including Silom, Sathorn, Bangrak, early Phahonyothi, Watthana, Khlong Toei, etc., with foreigners buying up to 2,159 units out of a total of 8,216 units, with a total value of 25,140 million baht, from a total value of 80,221 million baht or 31.3% , with buyers coming from various countries, both Western and Asian countries.

 

No. 2: Location F Ratchada-Lat Phrao, foreigners bought 1,974 units out of 2,907 units that were purchased. This means that foreigners bought 67.9% of all units sold in this location. In terms of value, foreigners bought 8,452 million baht out of 11,523 million baht, or 73.3% of the total. And the largest group that came to buy in this area were Chinese and Burmese.

 

No. 3: Location G On Nut-Suvarnabhumi, with foreigners buying 536 units out of a total of 1,847 units, or 29% of the total. The total value that foreigners bought was 2,445 million baht out of a total of 4,890 units, or 50%. This location also has a lot of Chinese buyers.

 

Location 4: Bangna - Theparak, foreigners bought 486 units or 13.4% of the total, with a total value of 1,620 million baht or 15.2% of the total. In this location, the buyers are still Chinese and Burmese.

 

The government should set a policy for foreigners to buy condominiums in designated areas, so that they do not buy haphazardly, which would be a threat to national security. Importantly, condominiums sold to foreigners should be drawn by lot. Foreigners should not live together on floors or in adjacent rooms, as this would create segregation.   In Singapore, Singaporeans of Chinese, Malays, or Indians must draw lots to allow for mixed living, for cultural integration.

 

In cases where foreigners come to buy real estate, there are different motivations, such as:

 

1. Aim to expand influence outside the country and export population to establish beachheads in various countries, including Africa and South America.

 

2. Russians and Ukrainians ' flee death ' from war, evade military draft and intend to settle in Thailand.

 

3. In the case of Myanmar, Myanmar people in the capital and big cities are trying to escape to Thailand and other neighboring countries because they believe that the military dictatorship system has made their country completely without a future, etc.

 

Whether foreigners’ property purchases can stimulate the economy may start with an analysis of the following figures.

 

1. Foreigners purchased condominiums in Bangkok and its vicinity in 2024 for 39,640 million baht.

 

2. It is estimated that if other types of real estate are included, such as single-family homes, the value may increase by another 30% because most foreigners will buy condominiums as their main priority. The transfer of currency will increase to 51,532 million baht.

 

3. Foreigners' purchase of real estate in regional provinces, with the end result being the main tourist provinces such as Phuket, Samui, Pattaya, Chiang Mai, Hua Hin, Hat Yai, etc., may increase by another 50%, totaling approximately 87,604 million baht, or no more than 100,000 million baht.

 

4. Compared to the nationwide housing sales of approximately 1 trillion baht, it is only 10%.

 

Therefore, it may be possible that real estate, especially housing for foreigners, may not stimulate the economy as much as it should or effectively.

 

However, if we want to stimulate the economy with real estate, we should encourage foreigners to invest in industrial estates, commercial real estate development, and construction of various types of public utilities. We should also collect taxes on the purchase of residences by foreigners like other civilized countries, such as:

 

1. Collect tax on foreigners purchasing houses and condominiums at a rate of approximately 10% to 20%. In Europe, it is almost 20%, Hong Kong is 30%, and Singapore is 60%. The money will be used to develop the country.

 

2. Collect land and building tax for houses and condominiums based on the market price only for foreign rentals, just like Thai people have to pay tax when buying property abroad, which is approximately 1% of the market price every year.

 

3. Capital Gains Tax is approximately 10% to 20% of the difference between the purchase price and the selling price according to the market price.

 

4. Inheritance tax, approximately 10% of the estate value, etc.

 

With the collection of taxes in accordance with international standards, foreign property purchases can help stimulate the economy to some extent, although not much.