A shift in consumer behaviour
Akkadet Udomsirithamrong, President of the Chiang Mai Real Estate Association, noted a significant shift in consumer behaviour from buying to renting, particularly among those unable to access loans. Despite Chiang Mai having one of the highest page views for property searches, interest has dropped by over 20%, indicating a retreat in actual buying demand. On the other hand, rental demand has risen, with fewer vacant units available for rent, reflecting a shift in both consumer behaviour and business strategies.
A changing foreign market
The once-reliable source of demand from Chinese investors has dwindled, partly due to economic uncertainty in China and concerns over safety in Thailand. However, Myanmar buyers have stepped in, particularly among the middle class seeking better security and education for their children, leading to a steady increase in property transfers from Myanmar nationals in Chiang Mai.
“The ease of travel from Mandalay or Yangon to Chiang Mai, coupled with cultural similarities, has made the city a top destination for Myanmar nationals seeking long-term relocation,” said Akkadet.
At the same time, US demand is on the rise, with a new US consulate opening in Chiang Mai and staff numbers growing from 200 to over 1,000. This has driven higher demand for both purchase and rental properties, particularly in the upscale sector.