Recently, the Myanmar authorities have increased their efforts to prevent money from leaving the country and to stabilize the kyat currency. This has led to legal action being taken against five real estate agents who were involved in buying and selling condominiums in Thailand. The agents were accused of opening unauthorized bank accounts abroad and transferring funds through illegal channels. This crackdown is aimed at addressing the significant devaluation of the kyat and at reducing economic instability within Myanmar.
Political and economic crisis in Myanmar
The political situation in Myanmar has been unstable since the coup in February 2021, which removed the elected government and triggered widespread protests and insurgencies. The country has faced severe economic challenges, including stagnation, frequent power cuts, and water shortages. In the midst of this turmoil, those who have the means are seeking stability and security abroad, with many looking to Thailand as a preferred destination due to its proximity and relatively stable real estate market.
Myanmar’s crackdown impacts the Thai real estate market
Myanmar citizens have become the second-largest group of foreign buyers of Thai property, following closely behind Chinese investors. However, a crackdown has led to a noticeable decrease in property sales to Myanmar nationals. Property agents in Thailand have reported a significant decline in inquiries and transactions from Myanmar buyers as a result of legal actions taken by the Myanmar government. This decline is particularly worrying for areas such as Bangkok and Pattaya, where many Myanmar nationals had been investing in condominiums as safe havens during their country’s turmoil.
Despite the ongoing crisis, there has been a significant surge in Thai condo purchases by Myanmar nationals. In the first quarter of the current year, condo transfers to Myanmar customers more than quadrupled to 392 units worth ฿ 2.2 billion ($59.88 million), compared to 76 units in the same period last year. This surge highlights the extent to which Myanmar citizens are seeking refuge and investment opportunities in Thailand. However, the recent crackdown has cast a shadow over this trend, causing uncertainty and hesitation among potential buyers.
Implications for foreign property buyers in Thailand
For individuals from other countries looking to buy property in Thailand, the current situation presents both warnings and potential advantages. The heightened attention on property transactions involving Myanmar citizens may result in more thorough assessments and rules regarding international property acquisitions overall. Nonetheless, this could also translate to reduced competition from buyers in Myanmar, potentially creating more openings for other foreign investors.
If you already own property in Thailand, the crackdown may initially reduce market activity, but it also indicates a shift toward stabilizing the market. Property owners can anticipate a more regulated and transparent market environment, which could improve the long-term value and security of their investments.
