Thailand's real estate market is now bustling as investors are using cryptocurrency to buy tangible property such as land, luxury homes and cars in a bid to cope with volatility.
Boon Yongsakul, chairman of Boat Pattana, a hotel operator and property developer in Phuket, said digital assets enabled investors, especially people aged 20-30, to generate enough income to buy up to 300 million baht ($8.95 million) properties.
“[One of] our customer[s] bought two houses by using cryptocurrency – the first house worth 12 million baht and the second costing 20 million baht,” he said. “We accept cryptocurrency because they are the future and we cannot stop it,” he argued.
Amornchai Saehuang, chief operating officer of VIP Property Development in Phuket, said investors, especially Chinese, are using cryptocurrency to buy tangible properties to cope with volatility.
He said a Chinese person recently bought a pool villa worth 28 million baht using crypto.
“Cryptocurrency investors are the new wealthy who are able to purchase products and services at high prices,” he explained. “These investors will be the main factor in any future economy and this needs close monitoring.”
Amornchai added that cryptocurrency investors are paying attention to luxury houses and land in tourism areas such as Phuket, Pattaya and Hua Hin.
Thai Chamber of Commerce Housing Business Association president Issara Boonyang said cryptocurrency is an issue that everyone should be aware of as it is an inevitable global trend.
“Cryptocurrencies will play an important role in the real estate market in the future as investors will be able to use their real assets to issue cryptocurrencies instead of debentures or borrowing cash from financial institutions.
“This will become popular as new generations prefer investment that provides good and fast returns rather than deposits because the interest rate is low,” he said.
THE NATION (THAILAND)/ASIA NEWS NETWORK