Just before the onset of the Covid-19 pandemic, Chinese buyers had an enormous influence on the property market in Thailand. Regarding purchasing property outside their own country in 2019, Thailand was the most popular investment for the Chinese. In fact, during that year, China made up over 43% of the total market of overseas buyers investing in the Thai Nation.
Of course, Covid has seriously affected the property market, but the latest information suggests that pent-up demand is still there. Bangkok, followed by Phuket, is the most popular Thai destination, but Pattaya is third. So when they say 12% of the Chinese buying middle class are interested, that’s a significant number of potential investors. Therefore the hope is for the pandemic to subside and allow these investors to travel and buy again.
Thailand is very popular in Hong Kong, and you can be sure that if the business community there starts turning assets into cash, some of it will get to Pattaya. For example, the new laws imposed in Hong Kong are being used in the political arena, with civil liberties and local elections. Suppose these measures start to spill over to economic and financial dealings in the future, causing uncertainty over people’s financial security. In that case, you can expect a lot more assets to be liquidated, and the money moved abroad.
Another factor is that people restricted from sending money overseas from mainland China already transfer that money to Hong Kong before moving it on. It is estimated that more than 50% of the funds for Chinese investments in Thailand is transiting through Hong Kong.
Chinese investors are always looking for exclusive properties such as this modern house with Real Beachfront
The gradual takeover of Hong Kong and the subsequent hardening of the Chinese government’s line against any outside interference means changes are taking place internally that will affect the entire market. How this plays out and the efforts Chinese authorities make to get the balance right will significantly affect the property market here in Pattaya.
People who want to spend money in other countries are being asked many questions before doing so. The authorities’ nervousness over the Hong Kong situation and how people react will play a large part in what happens next. While nobody expects the wholesale liquidation of assets to be moved abroad, some businesses are moving a proportion of their profits to Thailand and other places beyond the government’s reach. It could lead to a spending spree in Pattaya over the next few years.
China has made considerable strides in the last few decades, but it is still possible to have your assets seized at any time, and the rules are stringent even now as to when and where you can spend your money. The authorities spend a lot of time and effort protecting their currency, and they will not tolerate a mass exodus of assets to other countries. It seems that in the short term, the bringing of Hong Kong into the Chinese way of things will cause problems, but as mentioned above, this could be an excellent thing for the property and investment market here in Thailand. Many new projects have already arrived in Pattaya backed by Chinese money, and that is good to see because any problems will work out over time, even if things may be difficult for a while.
A nicely shaped 2 Rai plot of land in a prime location near the high-end projects in Pong, next to Mapbrachan lake.
China has ties with Thailand going back centuries. Viharn Sien – Anek Kusala Sala is a beautiful museum about 15 kilometres south of Pattaya. It houses rare Chinese artefacts and antiques, including several actual figures from the terracotta army, which were a gift from the Chinese government. It is one of the very few places where the terracotta army can be seen outside of China.
There are also many residents of Thailand with Chinese/Thai lineage, so if any country in the world were looked on favourably by the Chinese, it would seem to be Thailand, which can only be good for Pattaya.
Pattaya is an ideal choice for a second home and an excellent location to retire for all nationalities. It has much to do with the considerable investment that the Chinese are ploughing into the EEC area, which has not gone unnoticed by many potential buyers. They hope that the investment in Pattaya city and its surrounding areas will make their investment a better choice.
With the massive amount of money coming in from Hong Kong and China, there is a real commitment to the EEC and the future of the Thai Eastern Seaboard. Also, with the long-standing historical and emotional ties that the Chinese have to the KIngdom, it is hoped that Pattaya will continue to be a significant benefactor of their investment once the pandemic is over.