Thailand’s property boom attracts Chinese investors, but fraud risks loom
Foreign buyers face legal hurdles and scams, risking significant financial losses, according to Thai law firm
Thailand’s property market is booming and so is fraud. Mainland Chinese buyers, who accounted for nearly half of the purchases by foreigners last year, are among the victims.
Zoe Yu, a 45-year-old photographer from Ningbo in southeast China, encountered trouble when investing in Thailand’s second-biggest city of Chiang Mai. Drawn by affordable international education and lower living costs in the northern tourist hotspot, she signed a contract in January 2023 to buy a 10 million baht (US$293,000) villa following an introduction by a Chinese celebrity.
However, Yu soon found out that foreigners are prohibited from owning land or individual houses in Thailand. Even though her contract lacked legal protection, she fought and won a refund in July this year, but not before losing more than a third of her investment in expenses and renovations.
The market has unfortunately become a hotspot for fraud, as it attracts new investors with poor knowledge of the regulations, according to House Condo Lawyer, a Thai law firm specialising in property investment. Falsified title deeds and illegal land sales can lead to huge losses. One investor lost as much as 20 million baht, according to the firm.
It also highlighted the issue of illegal nominee structures, where foreign buyers are led to believe they can own land by registering it under a Thai nominee. This practice is illegal and can result in the foreign investor losing their investment if the nominee claims ownership or if authorities investigate.
