Myanmar Halts Thai Condo Purchases:
The Myanmar government is intensifying efforts to prevent citizens from purchasing condos in Thailand. This move aims to curb the outflow of capital and ensure compliance with domestic property regulations. Authorities are increasing surveillance on financial transactions and issuing strict warnings to potential buyers. This initiative reflects Myanmar's broader strategy to stabilize its economy and retain financial resources within the country.
The Intensified Crackdown on Thai Condo Purchases by Myanmar Citizens
The Myanmar government's intensified efforts to prevent its citizens from purchasing condos in Thailand have had significant repercussions on both the Thai and Myanmar economies.
The Thai condominium market is facing substantial challenges as Myanmar’s crackdown on property purchases by its citizens threatens to halt a major influx of foreign investment. According to the Thai Condominium Association, over 1 billion baht worth of Thai condo units were prevented from being transferred to Myanmar buyers in April and May due to the regime’s stringent measures. This disruption is expected to significantly impact developers’ condo transfers in the coming quarters.
Myanmar buyers, who have become a notable segment among foreign purchasers, are now encountering increased obstacles in acquiring Thai condos. With the once-dominant Chinese market slowing down, the importance of Myanmar buyers has surged. The Real Estate Information Center (REIC) reported a significant rise in condo transfers to Myanmar nationals starting in 2022. This trend continued into this year, with Myanmar buyers rising to the second spot in the first quarter, purchasing 392 units worth 2.2 billion baht, surpassing Russian buyers.
Simultaneously, the Myanmar junta is cracking down on the sale and purchase of Thai condominiums within Myanmar, following reports that the Thai property market is experiencing a surge driven by Myanmar buyers. Junta officials have arrested four individuals and are pursuing a fifth for illegal sales and purchases of Thai condos in Myanmar. These transactions are linked to Thai property expos held in Yangon. The accused Myanmar nationals are also charged with creating instability in the Myanmar currency market through their Thai property deals.
This crackdown is part of the junta’s increasingly desperate efforts to prevent currency outflows in an attempt to avert financial collapse. It follows the kyat’s plunge to an all-time low against the US dollar and a surge in gold prices to their highest levels ever in Myanmar last week.
In response, condo developers are advised to shift their focus to holding expos in Thailand and promoting off-plan units, providing buyers with more time to arrange foreign exchange transactions. New buyers may need to explore alternative methods for money transfers or even consider cancellations if necessary.
This situation highlights the complex interplay of economic, political, and regulatory factors affecting the real estate markets in both Thailand and Myanmar. It underscores the significant challenges faced by both countries as they navigate these turbulent times. The long-term impact on the real estate markets and economies of both countries remains to be seen.
Source of information: 6/12/2024
- (1) Thai condo market faces turbulence with Myanmar buyers blocked. https://thethaiger.com/news/national/thai-condo-market-faces-turbulence-with-myanmar-buyers-blocked
- (2) Myanmar Junta Arrests Thai Condo Buyers, Realtors as Currency Crashes.
- (3) Myanmar Arresting People Selling Condos in Thailand - Irrawaddy. https://www.asiafinancial.com/myanmar-arresting-people-selling-condos-in-thailand-irrawaddy
- (4) Myanmar secures 8th spot in top 10 countries from condo purchases in .... https://www.mdn.gov.mm/en/myanmar-secures-8th-spot-top-10-countries-condo-purchases-thailand