Bangkok's Iconic Chatuchak Market Under Threat Of Closure

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Phuket News: Chatuchak market under threat of closure


Chatuchak: Immensely popular with locals and tourists alike. Photo: J J Harrison

BANGKOK: -- The State Railway of Thailand (SRT) has threatened to close the capital’s iconic Chatuchak weekend market if it loses its final battle over rental fees.

SRT governor Prapas Chongsanguan made the threat on Friday (May 31) as the SRT prepared to take its case to the Supreme Administrative Court.

The Central Administrative Court ruled the day before that the SRT could not increase the monthly rental fees from B890 to B3,157 per stall.

The ruling was made on the grounds that the SRT had no authority to manage the market because the area was not associated with rail transport, even though the Chatuchak area belongs to the SRT.

The SRT took over one of the most popular markets in the country from the Bangkok Metropolitan Administration after the latter’s lease contract expired last year.

The railway agency then decided to increase rents and shop owners countered by taking the case to the court.

The SRT is the most heavily indebted government agency in the country, with accumulated losses of B40 billion. While it owns many plots of land with very high development potential, it lacks the funds to make even the most basic investments.

Mr Prapas said was surprised by this week’s ruling, adding that the SRT would appeal it to the higher court.

He defended the rental increase as it included other services including electricity and running water charges. The old rate set by the BMA did not include other costs, he added.


-- Phuket News 2013-2013-06-03

[chuang]

The place is a potential fire hazard...

[His Masters Voice]

Phuket News: Chatuchak market under threat of closure

Re-written ...

I have been approached by a private developer who is willing to make an appropriate large donation and I am now considering that proposal ... just give me time to think how I can get away with it.

[soinowinbkk]

You gotta be kidding me. Have always heard rents there were 30,000/month; therefore, I suspect the actual leaseholder sub-divides and sublets at great profit. I say enforce the new rent since they seem pretty reasonable to me, and now include "other services" like water and electricity (which I am pretty sure were simply 'stolen' in true developing world/street vending ways in the past). And have the BMA take it back over, since the market is a cornerstone of tourism for the city.

[BangkokGastronaut]

If the SRT doesn't get its way, how long before Chatuchak Market gets mysteriously torched?

[smokie36]

I was there a few months ago and noticed how much better organised the market was compared to years previous. I'm not much of a shopper though!

[rubberduck]

The place is a potential fire hazard...

Ever been inside Bobae Tower garment market ? (the 10 floors under the Prince Palace hotel)

[rubberduck]

You gotta be kidding me. Have always heard rents there were 30,000/month; therefore, I suspect the actual leaseholder sub-divides and sublets at great profit. I say enforce the new rent since they seem pretty reasonable to me, and now include "other services" like water and electricity (which I am pretty sure were simply 'stolen' in true developing world/street vending ways in the past). And have the BMA take it back over, since the market is a cornerstone of tourism for the city.

Indeed *some text missing* this article is not complete.

[pacovl46]

An increase from 890 to 3157 per month seems a bit steep to me!!!

[Genericnic]

If the market closed, I would miss it more than if SRT closed.

David

[Gerald14]

I have been a few times in my early days, but on a hot day people and the shoving and pushing puts me off...Nope I have another ting to do on a weekend

[soinowinbkk]

You gotta be kidding me. Have always heard rents there were 30,000/month; therefore, I suspect the actual leaseholder sub-divides and sublets at great profit. I say enforce the new rent since they seem pretty reasonable to me, and now include "other services" like water and electricity (which I am pretty sure were simply 'stolen' in true developing world/street vending ways in the past). And have the BMA take it back over, since the market is a cornerstone of tourism for the city.

Indeed *some text missing* this article is not complete.

Nothing missing ... 3 separate points, all taken directly from the original story: rent increases; justification by SRT; BMA lease expiration and return to SRT.

[wpcoe]

I'm still trying to figure this out:

The ruling was made on the grounds that the SRT had no authority to manage the market because the area was not associated with rail transport, even though the Chatuchak area belongs to the SRT.

If the area belongs to SRT, why can't SRT set the rental rate? They are not "managing the market," they are setting rental rates as the property owner.

[Mousehound]

I'm still trying to figure this out:

The ruling was made on the grounds that the SRT had no authority to manage the market because the area was not associated with rail transport, even though the Chatuchak area belongs to the SRT.

If the area belongs to SRT, why can't SRT set the rental rate? They are not "managing the market," they are setting rental rates as the property owner.

Surely SRT don't "own" the property. I thought SRT was a government body - in which case the SRT belongs to the people and SRT administers the the land on behalf of the people. But if it is to run successfully then for sure rents need to pay for the necessities. These small businesses are the life blood and character of a society - close them all down to make a glitzy shopping centre and all the money goes to developers and you end up with a city that is souless.

[belg]

wow, they are only asking 300% more from day x to day z... somebody in need of a new mia noi, villa, merc, ...

[Card]

If the SRT doesn't get its way, how long before Chatuchak Market gets mysteriously torched?

And many lives lost.

[vivek130205]

hi all, this thread gave me pretty good info about the actual problem of chtuchak vendors. I would like to get some clarification for group members, few months back I went to the weekend market to rent a shop but the rent that was demanded by the shop owners/ leasers was ranging between 13000 to 27000 the per month. I fail to understand how can one get a shop in that market as such a low rate . is there a different channel or approach that one needs to follow in order to get shop at such a rate? I import cosmetics and Indian handicrafts to Thailand, currently I am in wholesale but was planning to open up an retail counter. I woul appreciate your advice. thanks , Vivek

[krisb]

No way they will close it. Far to iconic. Perhaps management needs a look at.

Wasn't long ago they were talking about closing it down for something else?

[NomadRip]

If the SRT doesn't get its way, how long before Chatuchak Market gets mysteriously torched?

I was there last weekend, and passed by a row of about 7-8 stalls that had been burned.

[nuananddon]

If they close it down, where will all the pickpockets work? They have perfected their trade out there. A few years ago the wife had her hand bag sliced with a razor on two sides and never felt a damn thing. Those crooks are good.

[lee b]

good bye !

[Sunderland]

If the market closed, I would miss it more than if SRT closed.

David

If either closed, it wouldn't bother the vast majority of people.

Nice piece of real estate there to redevelop for hotels/condos/shopping malls.

[daiwill60]

The place is a potential fire hazard...

Isn't that the norm in these kind of places all over Thailand ???

[Emdog]

"the rent that was demanded by the shop owners/ leasers was ranging between 13000 to 27000 the per month." hmm My guess is that some vested interests rent the shops for that low ball figure, with no intention of opening a shop, then sublease at those much greater prices. How about raising the rents, but REQUIRING those who rent the spaces actually have a shop there? Fat chance that is going to happen. Net effect would be actual vendors paying less, cutting our speculators, RR getting more pay. Everybody happy except the sub leasors who no doubt have good connections....so it won't happen.

[Genericnic]

If the market closed, I would miss it more than if SRT closed.

David

If either closed, it wouldn't bother the vast majority of people.

Nice piece of real estate there to redevelop for hotels/condos/shopping malls.

And, of course, Bangkok needs more hotels/condos/shopping malls.

David

[vijer]

Yep, I wouldn't miss it at all. How could you miss being in the heat bumping into people that walk like they are crippled and haven't a clue how to get out of the walk way when they suddenly decide to stop to chat, pick their nose, look around bewildered...

Wouldn't take any visitors there either. The three times I have been there I never found a good deal. Nope no loss other than for the clueless visitor who is told it is an icon of BKK tourism and you should go there.

[vivek130205]

"the rent that was demanded by the shop owners/ leasers was ranging between 13000 to 27000 the per month." hmm My guess is that some vested interests rent the shops for that low ball figure, with no intention of opening a shop, then sublease at those much greater prices. How about raising the rents, but REQUIRING those who rent the spaces actually have a shop there? Fat chance that is going to happen. Net effect would be actual vendors paying less, cutting our speculators, RR getting more pay. Everybody happy except the sub leasors who no doubt have good connections....so it won't happen.

. so what I understand from the info that I've been able to gather so far is that only 10 percent of them , I mean the actual lessors run their own shop apart from them everyone have re rented it at a much higher price. honestly what the sort is demanding is not more than 4000 baht and I would like some one to assist me to get a shop for twice the price, I'm willing to pay 8000 baht but I know won't find a place 8 * 8 in that figure, it's all about earning money, they just don't want to give a share of the extra income earned to srt,

[bealus]

Visiting both chatuchak and asiatique last two years, could'nt help noticing that an increasing amount of tourists are (being by tour-operators)

redirected/attracted to the latter. chatuchak attracts fewer people constantly over time, as the asiatique does opposite(and copies

quite a bit of the concept of chatuchak).

Heck in a few years asiatique will have the same shoving and pushing as chatuchak in its "golden days"

New project please

[Greer]

You gotta be kidding me. Have always heard rents there were 30,000/month; therefore, I suspect the actual leaseholder sub-divides and sublets at great profit. I say enforce the new rent since they seem pretty reasonable to me, and now include "other services" like water and electricity (which I am pretty sure were simply 'stolen' in true developing world/street vending ways in the past). And have the BMA take it back over, since the market is a cornerstone of tourism for the city.

The recent going price for a 2m x 2m lockable space with no air-con is around 2 million baht to purchase. Each of these then has metered electricity that they have to pay, and for the majority of users there are a few "stand pipe" type water taps around the place - toilets are provided but at a charge of 5 baht per entry - not sure if owners get it free, but I doubt it.

What I would like to know, is how come owners of the shops have their own chanoht to the shop that was purchased - all duly registered with the lands office?

So what the SRT are trying to do is say that they will increase the rent by 400% or close it - standover tactics or what? Bloody thieves!

[Greer]

"the rent that was demanded by the shop owners/ leasers was ranging between 13000 to 27000 the per month." hmm My guess is that some vested interests rent the shops for that low ball figure, with no intention of opening a shop, then sublease at those much greater prices. How about raising the rents, but REQUIRING those who rent the spaces actually have a shop there? Fat chance that is going to happen. Net effect would be actual vendors paying less, cutting our speculators, RR getting more pay. Everybody happy except the sub leasors who no doubt have good connections....so it won't happen.

. so what I understand from the info that I've been able to gather so far is that only 10 percent of them , I mean the actual lessors run their own shop apart from them everyone have re rented it at a much higher price. honestly what the sort is demanding is not more than 4000 baht and I would like some one to assist me to get a shop for twice the price, I'm willing to pay 8000 baht but I know won't find a place 8 * 8 in that figure, it's all about earning money, they just don't want to give a share of the extra income earned to srt,

You do realise the cost of space there don't you? A 2 x 2 shop sells for nearly 2 million baht - so your 8 x 8 is 4 shops by 4 shops - that's 16 shops, so probably around the 24 to 30 million baht figure... a 3 bedroom house at 3 million baht to buy will end up being a bank mortgage rate of somewhere around 20,000 a month...