Mainland Chinese agents “swamping” Phuket

EXCLUSIVE: A substantial number of Mainland Chinese real estate agents are working in some of Thailand’s resorts, attempting to cash in on the current Chinese property buying boom.

ThailandProperty.News has been told that Chinese real estate agents are contacting Thailand property developers on Phuket, attempting to buy multiple units for cash at substantial discounts.

The real estate agents say they have waiting buyers in China, and that if the developer refuses to deal with them they will contact competitor property developers.

One Phuket developer, who wished to remain anonymous for fear of reprisals, said: “Mainland Chinese agents are become a real pain for us. They are swamping the island. We get three or four every week.”

We understand that Mainland Chinese real estate agents are demanding between 30 percent, and up to 50 percent, in return for buying between 30 and 50 units at a single development.

The developer we spoke to said some of the more unprofessional developers are likely to be tempted by these offer, but that they really don’t know what they’re getting in to.

The Chinese agents are very likely operating without a Thailand office and are approaching developers directly. It’s almost certain they are working illegally, and without a work permit.

For Thailand’s property developers, the offer of a substantial sale and the associated income is, understandably, compelling. The possibility of having instant sales to Chinese buyers without the need to market or exhibit in China is one that is hard to refuse.

So far, we understand Mainland Chinese real estate agents are focusing on resort property markets, and especially the island of Phuket.

Developers and agents in Bangkok, which third choice for Chinese buyers behind Phuket and Pattaya, should take this news as a warning.

The only way to prevent this happening, and to protect the interests of Thailand’s real estate agencies, is to introduce legal registration in Thailand.

The Mainland Chinese real estate agents are here because they can, just like the increasing number of less-the-professional British developers that have been forced out of Hong Kong and Singapore by legal authorities and have come to Thailand because they can.