The civil war in Mayanmars caused the country’s buyers to scramble and buy up condominiums in Bangkok and some other parts of Thailand as a way to relocate the money away from the war-torn nation. This inflow has revitalized Thailand’s stagnant real estate market.
In the first nine months of 2024, Thai condominium units sold to Burmese tripled from the first nine months of last year. According to information from the Real Estate Information Center (REIC), Burmese buyers are now the second-largest group of foreign buyers, following China.
REIC acting director Kamonpop Veerapala commented to reporters that Thailand is considered a sanctuary for foreigners, far away from any conflict.
REIC data reveal that over 1,000 units worth THB 5.46 billion ($158 million) have been sold to Burmese over the course of nine months ended in September.
Myanmar, which shares its 2,500 km border with the western part of Thailand, has been engulfed in a civil war since the 2021 military coup ended its tentative democracy and plunged the country into a multiethnic conflict.
According to the World Bank, Myanmar Kyat took a nosedive after the conflict began, raising the prices of essentials and dragging the economy down to only 1% growth in this fiscal year.
In response, the junta has attempted to restrict foreign exchange flow and stabilize kyat. In June, the junta charged five people for selling Thai condominiums, even though foreign property ownership was previously legal in Myanmar.
Regardless of the crackdown, investment in real estate has risen 65% in 3Q24.
Myanmar wealthy individuals were using Thai properties as a way to safeguard the money away from the unstable economy of their home country, said one real estate agent who asked to remain anonymous due to security concerns.
According to the agent, these buyers are eyeing property prices between $145,000-350,000, while also adding that aside from Bangkok, Chiang Mai was also another popular destination.
In an interview with a Burmese consultant who wishes to remain unidentified, the woman stated that the situation in her home country will continue to deteriorate, and she did not wish to return. The interviewee has worked in Thailand for two years and has purchased a $29,000 apartment on the outskirts of Bangkok.
The stream of Myanmar purchasers came about as the Thailand real estate market saw a reduction in overseas investment, as those investors were also facing an economic downturn of their own and had to prioritize elsewhere.
The majority of foreign property sales come from China and Russia, which have gone down 12% and 16.8% respectively, according to REIC research.
The real estate market in Thailand has been on a decline due to slow economic growth, REIC suggested that the sales of property are likely to drop 0.6% this year before slowly recovering in 2025.
