Tourists' reflections at the Kingpower Mahanakhon Skywalk as buildings are shrouded in smog in Bangkok on Jan 22, 2025. (Bloomberg photo)

Beijing resident Evelyn Lin paid US$274,000 for a flat in Bangkok in 2018, hoping to use the property as her home when she spends holidays in the Thai capital.

However, the recent spate of kidnappings of mainland Chinese and the trafficking of Hong Kong residents to scam farms in nearby countries are keeping her away from Southeast Asia's most popular tourist destination.

"I spent two months in Thailand last year and I thought Bangkok was quite safe, but recent news coming out from the country had me worried," the 39-year-old finance executive said. "I have no intention to go back to Thailand again."

While Lin has no immediate plans to sell her Bangkok property, her worries about personal safety could undermine sentiment among the single largest group of foreign investors in Thailand's property market and hurt local home builders amid a supply glut.

Chinese buyers, including those from Hong Kong, bought 4,386 residential units worth 20.2 billion baht (US$596 million) in the first nine months of 2024, according to industry data. Their purchases exceeded the combined amount spent by the next nine top foreign investor groups.

Earlier this month, Chinese actor Wang Xing was rescued from a so-called scam farm in Myawaddy in Myanmar, according to media reports. Wang had taken a flight to Bangkok, where he was supposed to work on a film production, but was abducted on his arrival.

In another case, a 25-year-old Hong Kong man returned to the city last week from a scam farm in Myanmar after his family paid a ransom. A Security Bureau delegation has met with Thai authorities to exchange intelligence in an effort to rescue 12 other trapped Hongkongers.

Thai developers can do without the negative headlines. Foreign capital has helped ease excess supply in the country. Foreigners accounted for about 25% of the transaction value of flats in the first nine months of 2024, according to the state-run Real Estate Information Centre.

Between 2018 and 2023, Chinese buyers were the most active foreign buyers in the Thai property market. They snapped up about 38,000 units with a total gross value of 170 billion baht, according to local media reports.

In Greater Bangkok, presales of homes shrank by one third to 222 billion baht last year through September. The glut has prompted developers to launch various marketing plans to entice buyers, including rent-to-own programmes for ready-to-move-in flats.

"This initiative is designed to help buyers who need additional time to clear their debts, build solid financial records, or accumulate sufficient funds for a down payment," said Christine Li, head of research for Asia-Pacific at Knight Frank. "In the short term, these programmes can alleviate several pain points for condominium buyers."

Despite weak new home sales and ownership transfers, Bangkok's condominium market stabilised in the second half of last year, Li said. The loan-rejection rate issue hurt transfer rates, even with various economic stimulus measures supporting the real estate sector, she added.

The Thai government has taken steps to spur investment, including legalising casino operations in the country. Property agents are banking on the move to fuel an influx of tourists and gamblers, helping feed demand for homes.

If approved by Thai lawmakers, the decision could boost prices of luxury flats by as much as 10%, according to Juwai IQI, a proptech firm with US$4 trillion worth of global property listings on its platform.

For example, property prices in Singapore surged by about 30% in 2007 before the government licensed the first casino in 2010, according to a Maybank research report.

"We have found that vendors and sales agents are already mentioning this legislation in their sales pitches to potential homebuyers," said Daniel Ho, co-founder and group managing director. "They say it's a reason to buy because the casino can boost economic growth, tourism and property prices."

As for the security risks, Ho believes that the impact from the recent negative headlines is unlikely to be last.

"The reality is that Thailand is a safe and inviting country, and everyone can see that with their own eyes," he said. "True safety incidents are rare in Thailand, and the Thai government works closely with Beijing to protect Chinese tourists and ensure they enjoy their trips."

This article originally appeared on the South China Morning Post (SCMP).