Since the latter half of 2022, the luxury property market in Thailand has witnessed a remarkable surge in foreign interest, coinciding with the return of international tourists. CBRE, a leading property consultancy, reports a significant increase of over 200% in sales transactions through their agency, indicating a clear trend. In response to this growing demand, developers are gearing up to launch new luxury and super-luxury residential projects in 2023, with a particular emphasis on single houses. This article explores the factors driving the surge in foreign interest and provides insights into the specific market segments attracting these investors.
Foreign Interest Drives Luxury Property Sales
CBRE Thailand, representing approximately 30 prominent residential projects with a total project value surpassing 40 billion baht, has seen a surge in sales driven by foreign buyers. Artitaya Kasemlawan, head of residential sales projects, reveals that among the projects represented by CBRE, 58% are luxury and super-luxury housing, 40% are luxury condominiums, and the remaining 2% are villa developments. From 2022 to early 2023, foreign buyers accounted for 11% of the purchases, while Thai buyers represented the majority at 89%.
Artitaya explains, “The majority of foreign buyers looking for condominiums and houses come from Asia, particularly China, Hong Kong, Taiwan, Myanmar, Singapore, and Japan. Most of the clients interested in buying villas come from Europe, such as Russia, the UK, France, and Germany.”
Rising Demand for Resort Properties
The surge in foreign interest extends beyond traditional residential properties to resort properties as well. CBRE reports a 24% increase in sales of resort properties through their agency in 2022 compared to the previous year. Prakaipeth Meechoosarn, head of Phuket property sales, highlights that villas or resort homes have emerged as the most sought-after residential properties, witnessing an impressive sales increase of 69%.
Positive Outlook for Thailand’s Luxury Property Market
CBRE anticipates that the tourism and long-stay market in Thailand will continue to gain momentum throughout the year, particularly from the second through the fourth quarter. This positive outlook is expected to further fuel the demand for luxury residences as second homes investment properties. With the return of international tourists and an increasing number of long-stay visitors, Thailand’s luxury property market is poised for continued growth. Developers are responding to this trend by preparing to launch new projects, offering foreign investors and affluent buyers a diverse range of luxurious options in the coming year.
The luxury property market in Thailand has experienced a surge in foreign interest since the latter half of 2022, driven by the return of international tourists. CBRE’s report of over 200% growth in sales transactions through their agency highlights the significant impact of this trend. With gearing up to meet the rising demand, the future of Thailand’s luxury property market looks promising, attracting foreign investors and solidifying its position as an appealing destination for upscale real estate investments.
