Chiang Mai: Stagnant property market as northern city battles for survival

 

Picture: Chiang Mai News

 

Chiang Mai News reported on the continuing battle for survival of accommodation businesses in the northern Thai city after the devastation of the coronavirus pandemic.

 

They called it a challenge for everyone from small operators to larger hotels all of whom are facing desperate times after relying on the now absent foreign tourists.

 

While some five star hotels have reported interest for booking at New Year smaller operators are lucky if they have 20-30% occupancy ahead of what previously was the busiest time of high season. 

 

Picture: Chiang Mai News

 

Many businesses are up for sale or lease.

 

Businesses on disputed land in Mae Rim that have been ordered to get out are still advertising and taking bookings from Thai tourists who are asking whether they will have problems if they book. 

 

Real Estate agents reported a huge number of properties of all descriptions up for sale in Khu Muang, Moon Muang, Wua Lai and Nimmanhemin districts. 

 

These included all kinds of accommodation including boutique hotels and even terrace properties.

 

There were few buyers and despite the availability of soft loans the market was largely stagnant. 

 

Source: Chiang Mai News

 

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"......the market was largely stagnant."

 

Has been for years, the pandemic has just made it even more stagnant.

Not at all surprising is it, that commercial property related to tourism (particularly hotel, guest house and holiday rental accommodation and entertainment premises) is suffering in a tourist city like Chiang Mai.

2 hours ago, webfact said:

There were few buyers and despite the availability of soft loans the market was largely stagnant. 

There are no buyers because there are on customers.  Loans are not income.  There is nobody to overcharge now. 

It was a beautiful city.... once.  Now for 6 months a year the air is un-breathable, development from tourism has been the usual uncontrolled debacle.   The fate of Chang Mai was already decided before the pandemic hit.  Chang Rai is going the same way given its unlivable for about 6 months during the annual pollution apocalypse of Thailand.  

Chiang Mai could be a beautiful city with fresh thought and now is the ideal time.  I am not holding my breath.

Covid, military government, smog, etc the perfect storm.

21 minutes ago, Thailand said:

Covid, military government, smog, etc the perfect storm.

Are you complaining?

Covid is worldwide and affects all travel/tourism/hospitality/real estate businesses.

The present government is doing ok compared with the Shinawatra shambles and especially in view of the current worldwide economic climate.

Smog is not a problem at this time of year and besides, it's predominantly smoke and dust when it does occur, not chemically laden industrial smog.  Majority of the smoke is carried across the north from neighbouring countries and rather than locally generated except when there are bush fires.

The perfect storm? ... try living in Australian bushland regions or California/Oregon ... you're in paradise here old mate ????

5 hours ago, webfact said:

Businesses on disputed land in Mae Rim that have been ordered to get out are still advertising and taking bookings from Thai tourists who are asking whether they will have problems if they book.

 

1 hour ago, Jimbo2014 said:

It was a beautiful city.... once.  Now for 6 months a year the air is un-breathable, development from tourism has been the usual uncontrolled debacle.   The fate of Chang Mai was already decided before the pandemic hit.  Chang Rai is going the same way given its unlivable for about 6 months during the annual pollution apocalypse of Thailand.  

Lived here 10 years never had a problem. My condos were chock full before Covid so you are talking out of somewhere which is not your mouth.

prior to covid BnB has decimated the hotel industry in Thailand continuing its destruction as it has across cities throughout the world. Tourism is teetering worldwide now and luckily Thailand didn't fold like many other countries did and end up spreading the pox even more by trying to revive a people business in a pandemic. Though this industry is in trouble the Thai people will survive this, they've proven they're a lot more resolute than many others..

2 hours ago, Jimbo2014 said:

It was a beautiful city.... once.  Now for 6 months a year the air is un-breathable, development from tourism has been the usual uncontrolled debacle.   The fate of Chang Mai was already decided before the pandemic hit.  Chang Rai is going the same way given its unlivable for about 6 months during the annual pollution apocalypse of Thailand.  

Hasn't been beautiful since the 80s. The new city was encroaching on the old Town even by 1990. It attracts the most ghastly kind of tourist and is over run by military

3 minutes ago, from the home of CC said:

prior to covid BnB has decimated the hotel industry in Thailand continuing its destruction as it has across cities throughout the world. Tourism is teetering worldwide now and luckily Thailand didn't fold like many other countries did and end up spreading the pox even more by trying to revive a people business in a pandemic. Though this industry is in trouble the Thai people will survive this, they've proven they're a lot more resolute than many others..

It's true that BnB has had a huge impact and I'm surprised they have not finished it off. They cracked down in Chiang Mai and now hardly any condos allow short lets - and i understand that strategy but they should take it further. 

4 minutes ago, Nout said:

Hasn't been beautiful since the 80s. The new city was encroaching on the old Town even by 1990. It attracts the most ghastly kind of tourist and is over run by military

Ghastly tourists unlike Pattaya and BKK then?  those 'ghastly tourists' brought in BILLIONS to the economy in CNX (and Thailand as a whole). One silver lining though not many Thais will be saying "we don't need farang" after this, all the ones I know are desperate to get the 'ghastly tourists" back.

PS where's the military?  over run?  

2 minutes ago, BobBKK said:

It's true that BnB has had a huge impact and I'm surprised they have not finished it off. They cracked down in Chiang Mai and now hardly any condos allow short lets - and i understand that strategy but they should take it further. 

they're investigating in Hua Hin also (so I was told) but major damage was already done in many businesses (pre covid). Perhaps post covid they'll start protection of those businesses on a more serious note..

52 minutes ago, from the home of CC said:

they're investigating in Hua Hin also (so I was told) but major damage was already done in many businesses (pre covid). Perhaps post covid they'll start protection of those businesses on a more serious note..

simply ban BnB as many farangs I know are breaking the law on short staying BnB'ers anyway

57 minutes ago, BobBKK said:

It's true that BnB has had a huge impact and I'm surprised they have not finished it off. They cracked down in Chiang Mai and now hardly any condos allow short lets - and i understand that strategy but they should take it further. 

I'm not sure how they could crack down on the new wave of BnB properties planned and under construction.  I know of 4 new, 2 recently finished, and 1 older property in one mooban which are Cn financed and occupied by (or planned for) FIFO tourists.  The new builds are huge, occupying 95% of the ~1 rai lots and with 2 or more 2 or 3 story 'homes' ... with multiple rooms. 

1 minute ago, McTavish said:

I'm not sure how they could crack down on the new wave of BnB properties planned and under construction.  I know of 4 new, 2 recently finished, and 1 older property in one mooban which are Cn financed and occupied by (or planned for) FIFO tourists.  The new builds are huge, occupying 95% of the ~1 rai lots and with 2 or more 2 or 3 story 'homes' ... with multiple rooms. 

It's against the Hotel Act.

1 hour ago, McTavish said:

Are you complaining?

Covid is worldwide and affects all travel/tourism/hospitality/real estate businesses.

The present government is doing ok compared with the Shinawatra shambles and especially in view of the current worldwide economic climate.

Smog is not a problem at this time of year and besides, it's predominantly smoke and dust when it does occur, not chemically laden industrial smog.  Majority of the smoke is carried across the north from neighbouring countries and rather than locally generated except when there are bush fires.

The perfect storm? ... try living in Australian bushland regions or California/Oregon ... you're in paradise here old mate ????

Didn't know all that thank goodness you were around to point out all those factors.

 

But this is Chiang Mai, not Aus or the USA and looks like you have been reading the government propaganda.

If you want to see where the SMOG comes from get out and about in a couple of months then you will see the fields and the forests burning, but you knew that already. 

 

Only one thing to do, raise the prices!

If I ever get back in we will be heading out of this dismal place forever to somewhere the tide comes in RIP CM ????

7 hours ago, Jimbo2014 said:

It was a beautiful city.... once.  Now for 6 months a year the air is un-breathable, development from tourism has been the usual uncontrolled debacle.   The fate of Chang Mai was already decided before the pandemic hit.  Chang Rai is going the same way given its unlivable for about 6 months during the annual pollution apocalypse of Thailand.  

spot on smoke+cv19=total bust! clearly the stats show that less than 180 days/year has clean air & this is not only CM but whole north sadly.

som nom na i'm leaving before the next big smoke. ciao

3 hours ago, Thailand said:

Didn't know all that thank goodness you were around to point out all those factors.

 

But this is Chiang Mai, not Aus or the USA and looks like you have been reading the government propaganda.

If you want to see where the SMOG comes from get out and about in a couple of months then you will see the fields and the forests burning, but you knew that already. 

 

they are burning every god damn day of the year there's always some crop change going on or some garbage or dry leaves, branches or plastic to burn so burn they will!! farms up in chiang rai seem to be burning a lot this time & doi sutep keep increasing their farms all the time & their burning!! why is doi pui still closed/barricaded off you think? because it's still an ugly black char coal disgrace that national parks are shy to show to the world. nobody is doing any clean up or replanting ofcuz. just waiting for a miracle before their coffee, lychee, orange, avacado, cabbage, corn & strawberry farms etc will burn the whole forest again!!!

4 hours ago, BobBKK said:

simply ban BnB as many farangs I know are breaking the law on short staying BnB'ers anyway

farangs huh?? so thais don't rent out via bnb????

People came for the charm of Chiang Mai.

Now that decades of overbuilding, ridiculous restrictions on night-life, ever-worsening pollution, and mass Chinese tourism have eliminated that, what else does Chiang Mai have to offer?

For a while, an interesting scene of remote workers and entrepreneurs emerged organically, making Chiang Mai a genuine hub for that growing trend, but the junta's ignorant new visa rules neatly shot that opportunity in the head.

If I didn't have a relationship here I wouldn't stay, and we are both agreed that we will leave when her parents die. We have to live elsewhere for the first half of every year anyway because of the chronic air pollution.

 

16 hours ago, BobBKK said:

Lived here 10 years never had a problem. My condos were chock full before Covid so you are talking out of somewhere which is not your mouth.

Your joking right.... you havnt noticed the pollution?  Oh right you have condos to rent (ok Ill keep quite but lets hope noone checks the pollution maps this year!).

21 hours ago, from the home of CC said:

prior to covid BnB has decimated the hotel industry in Thailand continuing its destruction as it has across cities throughout the world. Tourism is teetering worldwide now and luckily Thailand didn't fold like many other countries did and end up spreading the pox even more by trying to revive a people business in a pandemic. Though this industry is in trouble the Thai people will survive this, they've proven they're a lot more resolute than many others..

Yeah just double your prices  

On 9/22/2020 at 11:07 AM, webfact said:

Real Estate agents reported a huge number of properties of all descriptions up for sale

All at pre-covid prices. Thai-style economics ????

22 hours ago, McTavish said:

I'm not sure how they could crack down on the new wave of BnB properties planned and under construction.  I know of 4 new, 2 recently finished, and 1 older property in one mooban which are Cn financed and occupied by (or planned for) FIFO tourists.  The new builds are huge, occupying 95% of the ~1 rai lots and with 2 or more 2 or 3 story 'homes' ... with multiple rooms. 

100 000 Baht fine for anyone breaking the rules ?

I still enjoy living in Chiang Mai.

Had a lovely 7Km walk through the jungle up to the viewpoint on the way to Wat Doi Suthep, then back down through Wat Palaat.

Weather was nice, air was clean, the company was good ...... tired now.

 

Did notice the many 'for rent' signs along Nimman as I drove past.

Not sure there's much for sale, the owners of that road like to keep a tight hold.