The impact on the real estate market is affecting condominium purchases.

Due to the blocking of the regime in Myanmar, the ability to purchase Thai apartments has significantly decreased, leading to a noticeable drop in transactions involving citizens of that country. This situation may result in a substantial reduction in condominium market transactions from the second to the third quarter, according to the Thai Condominium Association. According to the association's president, Prasert Teddulayasatit, transactions worth over...1 billion bahtThis will negatively affect the transactions of developers. He claims that this impact will clearly be reflected in the number of condominium transfers, as Myanmar buyers, who are an emerging segment of foreign clients, will face difficulties when purchasing apartments in Thailand.

The condominium market in Thailand cannot ignore Myanmar buyers, even though the segment of Chinese investors has slowed down. The number of transactions and their value from Myanmar citizens are steadily increasing. According to the Real Estate Information Center (REIC), in 2022, the number of transactions involving Myanmar citizens surged, placing them fifth in terms of the number and value of transfers among foreignreal estate buyers. Throughout 2022, Myanmar investors purchased349 apartmentstotal cost2.55 billion bahtIn 2023, their positions improved – they took fourth place by purchasing564 apartmentsfor the amount3.7 billion bahtThe market focused on Myanmar buyers continued to grow in 2024: in the first quarter, they became the second largest in terms of purchases, acquiring392 apartmentsfor2.2 billion bahtthat exceeds the results of the Russian segment.

The share of Myanmar clients in the overall apartment transactions has increased in recent years. In 2022 and 2023, it rose from3-4%to10%in terms of quantity and12%in terms of cost.

In the Greater Bangkok area, where Myanmar buyers are most actively participating in the market, the number and value of condominium transactions increased in the first quarter of 2024 by446%and333%accordingly, having reached366 apartmentsfor the amount2.1 billion bahtThese figures have become the most prominent among foreign buyers. In previous years, this group has purchased333 apartmentson2.48 billion bahtin 2022 and497 apartmentson3.4 billion bahtIn 2023, as a result of the increase in transactions at the beginning of 2024, there is also a noticeable trend in the segment of foreign buyers.10%increase in the annual volume, which amounted to11.3 billion bahtwhile the total volume of transactions, including Thais, has decreased by14%.

The share of transactions involving foreign buyers has increased to36%from14%in the first quarter of 2023 and beyond25%for the entire previous year. This indicates a slowdown in demand from Thai buyers, as stated by REIC. Prasert believes that developers targeting Myanmar clients should shift to organizing exhibitions in Thailand. Due to the blockage of transactions, they may find themselves in a situation where they have to choose to purchase new properties, as they need time to carry out money transfers through currency operations.

In turn, Surachet Kongcheep, managing director of the consulting company Property DNA, noted that the new rules will not affect those who have already reserved a new property or are waiting for transactions to be completed. However, it may complicate matters for those who have not yet completed payments for their purchases, suggesting that some clients should consider alternative ways to withdraw funds. If this is not successful, it is possible that negotiations or even cancellations of deals may be necessary, Surachet added.