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We keep hearing a great deal about the Chinese buying in Samui but I am not seeing much direct evidence of this in the re-sale market although there are indications that Chinese developers are buying land with a view to developing for the Chinese market.
Juwai.com is one of the largest Chinese agents offering real estate to Chinese buyers and they have just issued their latest report on trends in that market. Outbound Chinese investment in real estate has increased dramatically from USD 5billion in 2010 to USD 101billion in 2016. This includes real estate purchases made by corporate investors and individual, or retail-level, investors. The main target for Chinese investment is the USA, followed by Australia, Hong Kong, Canada and the UK.
Of the SE Asian countries, Thailand has shown the least increase in demand as compared to Malaysia, Indonesia, Vietnam, Philippines and Cambodia where the increase in inquiries was a massive 311%.
Moving away from the Juwai report and looking at other reports on Chinese buyers and why they prefer other countries it is clear that Thailand’s land ownership laws, visa requirements and lack of available finance are disincentives compared to the ease of investing elsewhere in the world. The Chinese investor is a new phenomena and they do not have the experience of investing outside of China so they will take the path of least resistance. Note that four of the five top countries in the Juwai report have English as their primary language and all have legal systems that are clear and transparent.
There is no doubt that the Chinese market has great potential but whether that potential will be seen here in Thailand and in particular in Koh Samui we must wait and see.
This is an interesting article from Travel Daily News – Asia.
“Packages Drive Increased Revenue
Overall, Average Daily Rates (ADRs) – a common performance metric for hotels – for package stays were higher versus standalone stays by an average of more than 5%. This shows a substantial rate boost for hotels – and an incentive to include their hotels in package offerings. As an example, there is substantially more package demand for 4-5 star properties in Phuket and Koh Samui as compared to standalone hotel demand in these beach destinations.”
I wonder how this would relate to the Villa rental market? The full article can be found here.
The full Newsletter contains the following :
Comments on the Chinese market.
8 New Villa Sale Listings
3 New Rental Listings
5 New Apartment Listings
4 New Land Listings
4 New Price Reductions
Public Holidays in August – One
Cruise Ships visiting Samui in August – None
From the Press
– More hotels to join effort to tackle Koh Samui’s waste
– Anayara Resorts plans Thai debut in Phuket
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