During the first three quarters of last year, the Chiang Mai property market began showing signs of life. Research from Dot Property Group found that overseas Chiang Mai residential real estate demand grew between the first and second quarters and again between the second and third quarters. Additionally, 45 percent of condominium demand during the first nine months of 2022 came from international buyers.
Since then, the city has welcomed inbound arrivals from China, the biggest market for Chiang Mai, which has seen tourism approach pre-pandemic levels. That has had a positive impact on the local real estate market with many developers eyeing new project launches to meet current and future demand.
“Our hotels saw a rapid flow of bookings from Chinese tourists just 30 minutes after China announced the reopening date, leading to a significant increase in the occupancy rate, from 40 percent in 2022 to 70-80 percent earlier in the year. Now we are at 90 percent,” Khun Predikorn Buranupakorn, Ornsirin Holding CEO, told the Bangkok Post. “Many property agents specializing in foreign and Chinese markets have advised us to proceed with development of our new residential projects, citing a high level of buyer interest and demand.”
Overseas buyers prefer condominium units priced at THB3 million or less. This is a byproduct of the Chiang Mai real estate market which has a greater supply of cheaper properties catering to visitors looking for a holiday home with the potential to be rented out.
Domestic buyers also benefit from tourism rebound
It’s not just overseas buyers who are more active across the Chiang Mai property market. Dot Property Group found domestic home seekers started to become more active in the second quarter of 2022 and this momentum has continued as tourism increased.
According to the Chiang Mai Real Estate Association, this is something that improved the confidence of locals and saw them more willing to make a purchase decision than in years past. The most popular price point among Thai buyers for both houses and condos was THB3 million or less.
Keep Reading: Chiang Mai property market starts to recover in the third quarter