Unprecedented sales from China could make the Chinese Sansiri’s biggest spenders.
Overseas investors are continuing their shopping sprees in Thailand. Recently it was revealed that Malaysians are turning to Thai property and now Chinese are becoming increasingly more active players too. Despite China imposing stricter capital controls to restrict foreign property purchases, its residents are still looking overseas for their next overseas investment. Traditionally turning to property in Hong Kong, this could soon all be about to change as Sansiri anticipate a promising forecast in Chinese sales.
Cobby Leathers, head of international business at the Thai developer, cites this year Chinese transactions to double to USD 106 million. Leathers states that this should increase by another 32 percent for 2018.
According to figures 40 percent of Sansiri’s sales are from the overseas market. Investors are mainly from China, Singapore and Hong Kong. Thus the developer is reliant on attracting foreign purchasers and needs to keep this momentum to retain its success.
The Chinese are turning to Thai property as it costs significantly less than that of Hong Kong. This makes it easier for the Chinese to move capital out of the country. Thailand’s second biggest developer Sansiri reveals that the price bracket the Chinese are most active in is between USD 150,00 and 300,000. Considerably lower than on home turf as this price point is, “only a third or half found in Chinese cities”, according to Leathers.
Sansiri has already taken steps to capitalise on other markets. Having already opened up an office in Singapore, the developer will be expanding its presence in China opening up offices in Shanghai, Guangzhou and Shenzhen to supplement its current operation in Beijing.