Stephen Yao travelled from southern China’s Guangdong province to Thailand 32 times in 2017 and 2018 to help middle-class Chinese families invest in condominiums in Bangkok and Pattaya.
Two years ago he was still shuttling frequently between the two countries, seeking buyers to take over those properties.
But his wings have been clipped more recently as the boom in Chinese middle-class investment overseas has faded, with household wealth shrinking amid a sluggish economic recovery and a prolonged domestic real estate slump.
“Most of the property agents have switched to other careers,” Yao said. “How many middle-class investors are still earning what they were earning back then? They’re struggling with unemployment and domestic mortgage payments, while their overseas investments offer no relief.”
In the late 2010s, when the economy was growing rapidly, overseas real estate investment by middle-class Chinese surged, with the condominium markets in Thailand, Vietnam, Malaysia and Japan attracting large numbers of Chinese buyers eager to diversify their investments and experience new lifestyles.
02:15
China sees slowest economic growth in over a year with 4.6% GDP in third quarter
China sees slowest economic growth in over a year with 4.6% GDP in third quarter
Nowadays, Yao said, some of those who were unable to continue paying their mortgages had managed to recover about half their investment through legal channels. Others resorted to domestic consumer and business loans, but those who chose to hold on to their Thai properties were facing “sunk costs” on assets that were not easy to liquidate.
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