Foreign buyers: 80% from HK and China

At least one Thailand property developer is currently seeing 80 percent of its foreign buyers and investors coming from Hong Kong and China.

According to a recent UBS report on Chinese buying activity overseas, Sansiri’s total foreign presales during the first four months of 2018 amounted to THB 3.1 billion, an 11 percent year-on-year rise.

Some 80 percent of these are coming from Hong Kong and China.

Sansiri has been active in these locations for a number of years. It has first-mover advantage, according to the UBS report.

Property developer AP has recently focused more attention to foreign buyers, the report added.

Sansiri told UBS that Chinese buyers are paying between THB 160,000 and THB 170,000 per sqm for their property investments, while AP’s Life Asoke-Rama 9 had an average sales price of THB 130,000 per sqm.

The percentage of AP’s foreign buyers has grown to 30 percent currently from just 10 percent two years ago.

UBS said there has been substantial concerns in some countries concerning settlement risks attached to foreign buyers of residential properties bought off-plan.

The report suggested this should be a low concern as 61 percent of Chinese buyers use cash for their overseas property investments, and the proportion using local bank mortgages for their purchase abroad is small.

The majority of Chinese overseas property buyers tend to be cash buyers, using their own savings or savings from family and friends.

Where Chinese overseas property buyers are using mortgages, they tend to be from a Chinese bank, either from China or in the foreign market where they are buying.

The report also highlighted an increase in the proportion of Chinese overseas property buyers using Chinese banks in the overseas market, perhaps reflective of tighter capital controls and the flow of funds from China.