The Research and Advisory team at Cushman & Wakefield Thailand have analyzed that in 2025, the number of Chinese nationals coming to Thailand is likely to increase compared to 2024. This could lead to a surge in Thailand's real estate market, particularly in the condominium and low-rise housing sectors, both in terms of purchases and rentals.
Factors Driving the Increase in Chinese Nationals in Thailand
Key factors influencing this migration trend include:
- Strong diplomatic relations: Ongoing cooperation between Thailand and China continues to build confidence in investment and residency opportunities.
- U.S. trade policies: Under "Donald Trump’s" trade policies, China's exports may be impacted, prompting Chinese investors to seek new business opportunities outside China, including in Thailand.
- Adaptability of Chinese businesses: Although China’s economy may feel the effects of U.S. policies, its extensive trade partnerships and preemptive adjustments by businesses will likely minimize overall impact.
Transformations in Thailand’s Real Estate Sector
As Chinese investors enter the Thai market, they tend to engage in comprehensive real estate investments, including:
- Chinese developers initiating residential projects.
- Chinese construction firms and engineers utilizing advanced technology to accelerate building processes.
- Chinese laborers working in the construction industry.
- Chinese-sourced construction materials and home furnishing products, which have lower costs and are continuously imported into Thailand.
These investors typically establish corporate entities in Thailand, where Thai nationals hold the majority share, but top executive positions remain in the hands of Chinese nationals. This structure may put Thailand at a disadvantage in terms of business decision-making power.
Impact on Thai Developers
Thai developers may face heightened competition, especially in strategic locations such as:
- Industrial estates and factories
- Eastern Economic Corridor (EEC) zones
- High-potential urban areas
Additionally, Chinese investors tend to develop residential projects catering to their own community, creating niche markets that Thai developers may struggle to penetrate. This could lead to the loss of potential clients to these Chinese-backed ventures in the future.
Adapting to the Changing Business Landscape
To stay competitive, Thai businesses in various sectors—including tourism, retail, and import-export—must adapt to accommodate the influx of Chinese investment and capitalize on emerging opportunities.
Economic openness and foreign investment are inevitable in today’s globalized world. Therefore, Thailand must implement balanced policies to attract foreign investment while ensuring that local businesses remain competitive and do not suffer undue disadvantages.
Reference: Research and Advisory Team, Cushman & Wakefield Thailand