Thailand's real estate market is experiencing notable declines in foreign property demand, driven primarily by an intensified crackdown on nominee ownership and adverse global economic conditions.

Kamonpop Veerapala, president of the Government Housing Bank and acting director-general of the Real Estate Information Center (REIC), reported a year-on-year drop in condo transfers to foreigners in four out of the last six quarters.

This trend marks the first decline since the country reopened during the post-pandemic recovery phase, following six consecutive quarters of growth.

The downturn in foreign purchasing began in the fourth quarter of 2023, reflecting a marginal 0.5% decline from the same period in 2022.

This initial decrease was followed by a 4.3% rebound in the first quarter of 2024, but the market faced a subsequent drop of 6.8% in the second quarter.

An 11.6% increase was observed in the third quarter of 2024, yet this was swiftly succeeded by two quarters of decline: a 5% drop in the fourth quarter of 2024 and a further decrease of 0.5% in the first quarter of 2025.

In 2024, the total number of condo units transferred to foreign nationals reached 14,573, slightly up 0.9% from the previous year.

However, the total transaction value fell by 6.8% to 68.1 billion baht.

In the first quarter of 2025, 3,919 condo units were transferred to foreign buyers, translating to a total value of 16.4 billion baht, marking a 0.5% decline in the number of units and a 9% reduction in value compared to the previous year.

Despite the overall decrease in foreign condo ownership, the proportion of foreign ownership in relation to Thai ownership has grown.

In the first quarter of 2025, foreign ownership by unit count rose to 18%, up from 16.7% in the corresponding period of 2024 and 10.7% in the fourth quarter of 2024.

In terms of transaction value, the share of foreign ownership increased to 29.3%, compared to 28.6% and 19.9% in the same respective quarters.

The demographics of foreign buyers remain largely consistent, with Chinese nationals continuing to dominate condo purchases at 38%, followed by Myanmar at 11% and Russia at 7%.

This distribution mirrors the fourth quarter of 2024, where these nations accounted for 33%, 9%, and 7% of purchases, respectively.

Other nationalities that featured in the first quarter of 2025 include Taiwan, France, the United States, the United Kingdom, and Germany, reflecting a shift in ranking from the previous year.

The average price per unit transferred to foreign buyers in the first quarter of 2025 stood at 4.2 million baht, with an average unit size of 41.9 square meters.