Bitcoin for property is back in Thailand

Amid a battered property market due to the severe impact of the Covid-19 crisis, Thailand’s real estate brokers are increasingly trying to reinvent business by being open to payments with cryptocurrencies, a move which basically addresses a young tech-savvy clientele that is probably seeking bargains in the current situation.

Given that property developers particularly in Bangkok are sitting on huge unsold stock, any promotional activity is welcome. The same is true for owners who are eager to sell and call it quits in Thailand as the pandemic has changed lifestyles and the troubles of the Thai administration to manage the outbreak is nerve-wrecking for many expat owners.

In one of the latest offers, selected condos in a premium condominium tower called Life Sukhumvit 48 are being offered by property agency Richmont’s Thailand not just for Thai baht, but also for Bitcoin, Ethereum and the stablecoin Tether.

This offer follows a number business endeavours to make cryptocurrencies popular in the real estate industry in Thailand, for example by property portals such as Bit Estate which lists condos available for digital money.

While maybe for those who have amassed a cryptocurrency fortune by early investing in Bitcoin & Co likely don’t have many issues with that, the average condo buyer should be careful, though.

The Thai government and regulators such as the Bank of Thailand and the Thai Securities and Exchange Commission have had a strenuous “love-hate relationship” with these digital assets, either because of not understanding it fully or because of fearing monetary destabilisation or abuse by criminals.

However, at some point Thailand has reviewed its stance on digital assets and now officially recognises Bitcoin as a legitimate currency, followed by other cryptocurrencies such as Ethereum and Ripple. Also, the country now has several regulated and approved digital asset exchanges, notably Bitkub, Zipmex and Bitazza.

And this had a positive effect on the acceptance of cryptocurrencies. For example, Bitazza entered a cooperation with one of Bangkok’s largest property developer, Sansiri, to process real estate deals in Bitcoin, Ethereum of Tether. Another Thai developer, Ananda, partnered with Bitkub to offer real estate purchases with cryptocurrencies as an additional option to a cash payment.

While the prospects look good in terms of potential crypto deals in Thailand’s property market, one should always keep in mind that regulations and legal frameworks are prone to change in this country, particular with a government broadly known for incoherent and imprudent decisions in all ways of life.