BANGKOK: Buyers from Myanmar have been snapping up condominiums in Bangkok and other parts of Thailand, providing a bright spark for the kingdom’s sluggish real-estate market, as they look to move money out of an economy battered by civil war.

Thai condominium unit sales to Myanmar nationals in the first nine months of 2024 tripled from the same period last year, according to the Real Estate Information Center (REIC), making them the second-largest group of foreign buyers after those from China.

“Whenever there is conflict in other countries, foreigners turn to Thailand looking for peace,” REIC acting director-general Kamonpop Veerapala told reporters this week.

From January to September, over 1,000 units worth 5.46 billion baht ($158 million) were sold to Myanmar nationals, REIC data showed.

Myanmar, which shares a 2,500-km (1,550 mile) border with Thailand, has been in political and economic turmoil since a 2021 military coup ended a decade of tentative democratic and economic reform, sparking nationwide violence.

Its currency is also in free fall, pushing up prices of essentials and the economy is expected to grow at just 1% in the current fiscal year, according to the World Bank.

In an attempt to stabilise the volatile kyat, the junta in June charged five people for selling Thai condominiums.

Foreign property purchases have not previously been illegal in Myanmar but the junta is now attempting to restrict foreign exchange flows.

The junta did not reply to a Reuters request for comment.

Purchases of Thai properties from Myanmar picked up in 2022, and have since risen as fighting has intensified across the country.

Despite the crackdown, investments have kept pouring in, rising 65% on a quarterly basis in the July to September period, according to REIC data.

Some wealthy Myanmar nationals were purchasing Thai properties to avoid keeping money in their war-torn home country, one real estate agent who asked not to be identified over security fears told Reuters.

The agent said these investors were buying properties priced between $145,000 and $350,000, adding the northern province of Chiang Mai was another popular destination.

For others, their Thai properties are now home.

“(The) situation in Myanmar will get worse and I have no plans to return,” said a 30-year-old consultant from Myanmar who asked not to be identified for fear of retribution from Myanmar authorities.

The woman, who has worked in Thailand for two years, said she recently bought an apartment for about $29,000 on the outskirts of Bangkok.

The surge in Myanmar buyers comes as Thailand faces a slump from other foreign investors. Sales to Chinese and Russian buyers – the major players in recent years – were down 12% and 16.8%, respectively, according to REIC.

Kamonpop said those investors have withdrawn due to economic woes in their own countries.

Thailand’s real estate market is flagging due to overall slow economic growth, with REIC forecasting that unit sales will drop 0.6% this year before gradually picking up in 2025. – Reuters

Source: The Star, 20 November 2024