Chinese buyers now make up the largest share of foreign purchasers in the Thai condominium market. In addition to the fast-growing segment from mainland China, other Chinese buyers come from Taiwan, Hong Kong, Singapore and Malaysia. This has prompted many developers in Thailand, especially listed ones, to market their projects abroad, with a special focus on Asian markets.

In the past, many developers held marketing roadshows in Singapore, Hong Kong and Taiwan, but very few went to China. This has changed in light of the dramatic growth in tourist arrivals from the mainland over the past decade. Chinese buyers are now on the radar screens of all condo developers.

While some Thai developers have opened sales galleries to await Chinese buyers, others are going abroad to meet prospective buyers in their home countries. Some have gone abroad by themselves, while others have engaged local agencies or China marketing experts, which is a more effective way of connecting with Chinese buyers.

As well, some agents or investors from China have set up offices in Thailand to buy condominium units in Bangkok and sell them abroad at higher prices. Their main target group is Chinese buyers, though some have marketed units to other foreigners. Some have been very successful, given that condo units in Bangkok are cheaper than in major Chinese cities as well as Hong Kong and Singapore, which tend to be the only markets Chinese buyers know.

Chinese tourists, who have topped all international arrivals to Thailand every year since 2011 and now account for 30% of all foreign visitors, are becoming the main drivers of buying interest, especially in Bangkok.

But the outlook for condominium sales to Chinese purchasers has dimmed in recent months. The significant decrease in Chinese tourist arrivals since the Phoenix tour boat tragedy in July has been a major factor. Chinese inbound arrivals fell by 8.8% year-on-year in the third quarter, though authorities hope that confidence-building measures and incentives will help reverse the trend during the current high season.

One other factor that hasn't received as much attention has been the weakness of the Chinese yuan. The US dollar has been very strong against a number of currencies for many months, but trade tensions between the US and China have magnified the impact on the yuan.

Against the Thai baht, meanwhile, the yuan is down 6% this year, following an 8% decline in 2017. This has directly affected Chinese purchasing power. Surveys have shown that Chinese tourists are spending less per trip, and concern about the exchange rate has also affected Chinese confidence in buying property in Thailand.

Some Chinese tourists visiting Thailand set aside time to look at condominium units in Bangkok and major resort destinations. Agencies from China also organise trips to Thailand for clients, with specific locales and developments on the itinerary. As well, some developers in Thailand welcome many Chinese tour groups every month.

It is still a bit early to quantify the extent of the impact from the slowdown in tourist arrivals and currency weakness on Chinese buyer interest. The picture might become clearer as we monitor transfers to Chinese buyers of condos approaching completion in December and in the first few months of next year.

The other factor that has to concern all developers in Thailand is the number of Chinese buyers who have purchased condominium units for investment only and will not take transfer, looking instead to resell them. Consequently, developers will have to carefully monitor all activities by their Chinese buyers during the transfer period.

Surachet Kongcheep is a veteran local property market expert. He can be reached at surachet.jock@gmail.com