Chinese and Filipino Expatriates in Thailand Increase as Industry Growth Depends Less on Japan

Real Estate Press Releases Thursday October 1, 2020 15:04
Bangkok--1 Oct--CBRE

The nation’s dominant expatriate nationality has been Japanese, currently making up 18% of expatriates in Thailand (28,560 as of Q3 2020). However, the Japanese expatriate numbers are decreasing. CBRE, a leading international property consultant, found that Chinese expatriate numbers in Thailand are rising as China’s manufacturing has shifted overseas while Filipino expatriates have increased in line with local demand for teachers fluent in English, resulting in de-centralisation of expatriate hotspots.

Mr. Rathawat Kuvijitrsuwan, Head of CBRE Research and Consulting, Thailand, commented, “Japanese expatriates primarily work in manufacturing, export/retail/automotive, real estate services including leasing, and business services sectors. The decline in the Japanese expatriate population in Thailand is due to high industry maturity where locals can fulfil expatriate jobs competently, relatively high wages, and industrial relocation to neighbouring countries such as Vietnam and Cambodia.”

Rapid industrialisation in Thailand between the mid-1980s until the Asian Financial Crisis in 1997 saw a surge in the Japanese expatriate population culminating in Thailand as the fourth largest Japanese population outside Japan at its 2015 peak after USA, China and Australia. However, the population size has experienced a 22% decrease from 36,666 in 2015 to 28,560 as at Q3 2020, the lowest amount since 2012.

On the contrary, the amount of Filipino and Chinese expatriates, the two fastest growing nationalities, have increased by 38% (13,146 to 18,472) and 31% (from 18,812 to 25,811) between 2015 - Q3 2020, according to the Foreign Workers Administration Office.

Chinese nationals in Thailand work mainly in manufacturing as the Asian giant continues to move its production outside China to avoid US tariffs on Chinese-made goods in addition to ASEAN brand presence expansion. Filipino nationals, the second group with the highest growth, work mainly as teachers due to their native fluency in English and the relatively lower wages than their European, North American and Oceanic counterparts, playing strong force behind international and bilingual schools in Bangkok.

CBRE Research reveals that extensions of downtown Bangkok such as Rama IX and Ratchadapisek have become Chinese expatriate hotspots due to amenities such as Chinese-centric restaurants, shops and convenient MRT access. Similarly, On Nut is a preferred area for Filipino expatriates due to lower rentals than early to mid-Sukhumvit while still affording convenient BTS access.

Condominiums for rent along Ekkamai BTS generally command over 15% premium in rent compared to condominiums along Phra Khanong BTS, despite being just one station apart.

“This means affordable midtown condominiums along mass transit lines with a maximum of two interchanges away from expatriate office hotspots could become increasingly attractive to investors seeking rental properties with expatriate demand as expatriate areas could de-centralise outwards in line with high-growth expatriate nationalities and their respective preferred areas,” Mr. Rathawat concluded.

Latest Press Release

IHG to open Thailand’s largest Crowne Plaza in the heart of Bangkok

InterContinental Hotels Group (IHG(R)) has signed an agreement with Sukhumvit Centre Point Co., Ltd. to take on management of Grand Sukhumvit Bangkok hotel in 2021. The 386-room hotel will rebrand as Crowne Plaza Bangkok Grand Sukhumvit by end of 2021...

Asset World Corporation is Thailand’s First Real Sector Company to Receive a Green Loan from the World Bank Group’s IFC

Asset World Corp Public Company Limited (AWC), Thailand's leading integrated lifestyle real-estate group, is the first real estate group in the country to receive a green loan from the International Finance Corporation (IFC), a member of the World Bank...

Frasers Property, as the first thriving all-in-one real estate platform, was the 'top 3' player in all asset classes by 2023.

Frasers Property (Thailand) Public Company Limited or "FPT" continues to forge ahead for growth with the integration of all 3 asset classes – Residential, Industrial and Commercial properties – over its "One Platform" under the global brand,...

JLL and Risk Integrated launch new AI technology to revolutionise real estate leasing and investment

Leading global real estate consultancy, JLL (NYSE: JLL), and risk management company, Risk Integrated, today unveiled OfficeBlocks, an industry-first property technology – or proptech – suite of tools set to transform commercial real estate...

Agoda Awards Recognition for Tinidee Hotel Ranong

Tinidee Hotel Ranong, ideally located close to Ranong’s famed natural mineral hot water springs, has received an excellent 8.3 rating on Agoda’s 2020 Customer Review Awards! Agoda is one of the world’s biggest and best-known on-line...

Related Topics