Increase in Condo transfers to Myanmar buyers

Condo transfers to buyers from Myanmar in the first half of 2024 exceeded the total for the entire year of 2023, which had previously set a record. According to a report from the Real Estate Information Center (REIC), 638 condo units valued at 3.24 billion baht were transferred to Myanmar nationals across the country during this period. This surpasses the 564 units worth 3.7 billion baht that were transferred throughout 2023, marking the highest level ever recorded.

The trend of increasing condo transfers to Myanmar nationals began in 2022, with 349 units valued at 2.55 billion baht, a significant rise from just 30 units worth 274 million baht in 2021. Vichai Viratkapan, acting director-general of REIC, noted that Myanmar nationals entered the top 10 among foreign buyers for the first time in 2022, compared to previous years when transfers were limited to 20-50 units annually.

In that year, Myanmar nationals ranked sixth among foreign buyers, following Chinese, Russian, American, British, and French nationals, who occupied the top five positions. In terms of the value of the condos transferred, Myanmar nationals held the third position, trailing only Chinese and Russian buyers.

In the previous year, buyers from Myanmar ranked fourth in the number of condominium transfers, following Chinese, Russian, and American buyers. In terms of value, they secured the third position, again behind Chinese and Russian nationals.

During the first half of 2024, Myanmar nationals advanced to second place for both the number and value of condos transferred, surpassing Russians, who had maintained the second position for several years, with Chinese nationals still leading.

Analyzing the quarterly data, the figures for the second quarter indicated the effects of the Myanmar government’s crackdown on condo purchases by its nationals in Thailand, which began in April 2024.

In the second quarter of 2024, the number of condo transfers to Myanmar nationals fell to 246 units valued at 1 billion baht, a decrease from 392 units worth 2.2 billion baht in the first quarter.

A source within the property sector indicated that the decline was attributed not only to the stricter enforcement of money transfer regulations in Myanmar but also to changes in Thailand. The Lands Department has tightened its scrutiny of foreign exchange transactions (FET), the source explained.

“If an FET is ambiguous, that transaction will be put on hold,” the source stated. “This policy is applied not only to transactions involving Myanmar nationals but also to those from China.”

The Real Estate Information Center (REIC) reported a 6.2% year-on-year decline in the total number of condo transfers to foreigners in the second quarter of 2024, totaling 3,342 units with a combined value of 14.8 billion baht, reflecting a 17.7% decrease.

As a result, the share of condo transfers to foreigners decreased to 11.8% by number and 21.1% by value, compared to 13.6% and 24.6%, respectively, during the same period the previous year.

Source: Bangkokpost