EXCLUSIVE: Thailand property and real estate may become more attractive to buyers and investors from China as a result of this week’s devaluation of the Chinese currency, according to the largest property portal focusing on international property.
The news will likely come as a relief to many developers and real estate agents in Thailand who have reported keen interest and a growing number of sales to property buyers from China, especially in the Kingdom’s resort markets.
Andrew Taylor, co-Chief Executive Officer of Juwai.com, told Dot Property Group: “What we’ve seen this week in the currency markets should not have a big impact on Chinese demand for Thailand property.
“The media frenzy may have created the impression in the minds of consumers that the devaluation was bigger than it actually was, at just two to three percent. The subsequent fall in the value of the Thai baht makes the practical effect of the yuan’s depreciation even smaller.”
Taylor added that China’s currency is up 20 percent, or more in some cases, against other major currencies during the past year, and that in reality, it is still nearly as strong as it has ever been in modern times.
“In the unlikely event that the currency shift does affect consumer behavior, Thailand stands to benefit, as a relatively close and inexpensive destination for tourism and property purchasing. People will trade down from more expensive markets to less expensive ones.
“If Chinese buyers do become more stingy, and again I’d like to restate that I don’t believe that’s the situation now, then Thailand becomes the more attractive option compared with locations such as Australia and the United States which are more expensive to travel to and purchase property in.”
He concluded: “For Thailand it’s a situation of no change, or of direct benefits.”
One Thailand developer with immediate and first-hand experience is Nigel Cornick, Chief Executive Officer of Kingdom Property. He and his team were in Shanghai earlier this week marketing the Southpoint residential project in Pattaya alongside a 20-year long stay visa.
The company recently reported significant interest from Chinese buyers.
He told Dot Property Group: “From discussions during our trip, the real estate agents and developers we talked to felt there would not be a significant negative impact.
“Their views indicated moving currency away from the yuan was a long term hedge.”
Yesterday Thailand’s Ministry of Finance as well as the Bank of Thailand confirmed that China’s decision to weaken its currency won’t affect the country.
Speaking to the media specifically about the impact of the weakening yuan on the country’s tourism, Finance Minister Sommai Pasee said prices of Thai products and services would be higher by no more than two percent, which would be marginal for Chinese tourists.
The Bank of Thailand reported the weakening Yuan had caused the value of baht to fall by 0.35 percent, and added it expected the move to boost China’s economy in the long run and benefit the region’s economy accordingly.
Image: Kingdom Property was marketing its Southpoint project in Pattaya alongside its 20-year long-stay visa to Chinese buyers in Shanghai earlier this week.
