Chinese Investors Buys Real Estate & Properties In Bangkok, Pattaya
Mega property acquisitions outside mainland China
Chen Hongtian, almost 60 years of age today, is considered one of the richest Chinese of our days. Since 1984, when he began working for a state-controlled trading firm in Shenzhen, Chen has managed to become the mega-rich Chinese he is today, through his investments in southern China’s real estate market. The value of his company is estimated at around 2.4 billion USD.
Chen Hongtian, who has specialized in the real estate of luxury properties in Hong Kong’s very best neighborhoods, made the headlines in 2016 when he purchased for himself and his family a Hong Kong home at the price of 271 million USD. He had then told the press that behind this purchase of the 856 square meter home at perhaps Hong Kong’s most prestige district, was simply the reason that his lifestyle was in need of a bigger new home.
This Chinese billionaire and businessman is not alone when it comes to sharing the opinion that property buying in Hong Kong and generally abroad, is the best possible investment. The readiness of mainland China’s investors to channel money towards property acquisitions abroad, is manifested today by numerous other Chinese investors who buy real estate properties in Bangkok, Pattaya and Phuket.Anbang, a colossal Chinese insurance company, a few years ago, bid 14 billion USD to purchase Starwood hotels; a transaction, which, if Anbang had not withdrawn in the last minute, would have been the largest takeover in history of an American company by Chinese interests.
What Are We Taught From The Attitude Of Chinese Investors In The Recent Past?
However, this story regarding Anbang, its bid and its last-minute withdrawal, as an example of a last-minute play connected to a business transaction, worth billions of USD, is very telling about the fact that Chinese investors of this caliber have a certain strategy which can be summarized in the phrase: Let others do all the hard work and we bid higher. The interesting point out of this story, is that these Chinese wealthy businessmen, are ready to proceed with huge investments, based solely on the strength they feel they have by means of their capitals and sometimes their business moves may be motivated by a plain arrogant attitude or a liking to make an impression to their worldwide competitors.
Based on such stories drawn from the recent history of property acquisition outside China, we should not be surprised if in the years to come we see more and more headlines talking about Chinese investors buying more and more Bangkok properties. Already in 2017 there was a huge wave reported of capital flowing from mainland China to Thailand in a spree of property purchases both for personal use, as was the example of Chen Hongtian, with which we began our story, as well as purely for investment reasons.
Pattaya, Bangkok, and Phuket, with their pristine beaches, their cuisine and ancient monuments, have been attracting more and more Chinese visitors with the years. It is being reported that Chinese tourists make up around one third of the total number of people visiting Thailand each year, while Chinese buyers of property form 60% of the real estate buyers of the country. Impressive figures!