Foreign condo sales have surpassed pre-pandemic Covid levels.

The Chinese and Russians are leading in the number of foreign buyers of apartments in Thailand. This is due to the visa-free regime and geopolitical conflicts, which stimulate demand for real estate in the country.

According to the Real Estate Information Center (REIC), foreign buyers purchased 14,449 apartments worth 73.2 billion baht in 2023. This is an increase of 25% compared to 2022. Chinese bought 6,614 apartments, or nearly 46% of the total, worth 34.1 billion baht, REIC said. Russians are a distant second with 1,260 apartments purchased, followed by buyers from Myanmar and the United States in third and fourth place respectively.

REIC notes that buyers from Myanmar pay the highest average price for an apartment at 6.6 million baht. In Chonburi, home to the resort town of Pattaya as well as several industrial zones, about 41% of apartments purchased by foreigners were sold. In Bangkok, the proportion of sales to foreigners was 38%, REIC said. Apartments worth 3 billion baht or less accounted for nearly 50% of total sales.

Temporary visa-free regimes for tourists from China and some other countries last year, as well as a permanent visa-free entry agreement with China starting March 1, contributed to an increase in sales, noted REIC. The report also mentions geopolitical conflicts, such as the ongoing war between Russia and Ukraine and political unrest in Myanmar. "This shows that the purchase of apartments by foreign citizens is improving and returning to a normal state," said Vichai Viratkapan, the executive director of REIC.

Sales of apartments to foreigners last year were 13% higher than in 2019, when 12,798 apartments were sold for a total of 50.6 billion baht, according to REIC.

Prime Minister Srettha Thavisin hopes that tourism will be the main driver of the country's slow economic growth. The tourism sector directly accounts for about 12% of the gross domestic product and nearly one-fifth of jobs. Last year, the government lifted visa requirements for travelers from China, Russia, Kazakhstan, India, and Taiwan, and Srettha ordered airlines to add more flights, streamline airport operations, and reduce waiting times.

The Tourism Authority of Thailand expects further recovery and visits to the country by 35-40 million tourists this year, including 8.2 million from China. This will bring the country closer to the record set in 2019, the year before the pandemic, when the number of visitors was nearly 40 million.