Opportunities and Limitation of Selling Real Estate with Cryptocurrencies: Case Study Real Estate Listed on The Stock Exchange of Thailand

Abstract

Digital currencies have been adopted on blockchain technology in Thailand. Also, they have been increasing in cryptocurrency investor rates which there is a high total investment of 260 billion baht in 2021. Due to their features that can transact without a bank as an intermediary, entrepreneurs give people opportunities to buy real estate with cryptocurrencies. This research aimed at studying opportunities and limitation of buying real estate with cryptocurrencies. The researcher gathered information by interviewing samples as follows: 1) four of real estate companies listed on the Stock Exchange of Thailand; Sansiri Public Company Limited, Chaopraya Mahanakorn Public Company Limited, Origin Property Public Company Limited, and Singha Estate Public Company Limited (2) Bank of Thailand (3) The Securities and Exchange Commission (4) Digital Asset Exchange (5) Real Estate Association of Thailand and (6) Consumers (cryptocurrency holders) 50 people. All samples above had been interviewed before the Securities and Exchange Commission released the rules of buying and selling goods with digital currencies.

The study found that 1) entrepreneurs who has the concepts of selling real estate with crypto currencies focus on reaching new groups of consumer, increase sales channels, and create marketing plans related to consumer demand, government and private companies. 2) For sales processes and project characteristics, companies sell their real estate in every sales process and every project characteristic with several currencies which is in line with some consumer demand. However, the purchase amounts are not enough to be significant. 3) To manage risks of volatile in cryptocurrency prices, companies adopt low digital currencies because they can be immediately changed to Thai baht with asset exchange companies that have high liquidity. There are few companies adopting digital currency for speculation. In the parts of government and private companies, they don’t have any policies to prevent risks of volatile in cryptocurrency prices that occur with entrepreneurs. Consumers specify the purchase rates and carefully read information before buying any real estate. 4) Opportunities and limitation in selling real estate with digital currency are improving financial liquidity, and there are new projects with high return that go along with the behavior of new consumers. Conversely, there are some limitation that companies and consumers have to consider all related laws, learn about how to use, and transfer fees.

This research indicated the real estate developers may have an opportunity to convince consumers and increase their demand to buy real estate with digital currencies in the future because of new real estate options that offer a high return. Moreover, sell is still able to provide liquidity for entrepreneurs. In part of limitation, there are still few laws in considering process. This could take a long time to be generally accepted. If it is general, real estate business will be able to reach digital currencies with consumers around the world.