Photo credit: Chiangmai.com
The Government Housing Bank’s Real Estate Information Centre (REIC) reports that Chiang Mai, northern Thailand’s largest property market, is currently experiencing a slowdown. Despite holding over 50% of the residential market across five northern provinces, August 2025 sales of new projects declined by 13.4%, while unsold units rose by 4.3%. The absorption rate has fallen to 1.6% per month, meaning it would take about 57 months to clear current inventory, up from 47 months last year.
This downturn is compounded by a sharp decrease in new project launches. In the first half of 2025, only 284 new units were introduced—down 66.2% in volume and 74% in value compared to 2024. Segment-wise, subdivision homes saw a 76.8% drop and condominiums declined by 52.6%. Interestingly, villa sales surged by 700%, despite fewer new launches, indicating growing interest from international buyers.
A Shift in Consumer Behavior
Akkadet Udomsirithamrong, President of the Chiang Mai Real Estate Association, highlights a notable change in buyer behavior. Many are now favoring renting over purchasing, especially those unable to secure loans. While property search interest in Chiang Mai remains high—one of the top in Thailand—interest has decreased by over 20%, signaling reduced buying activity. Meanwhile, rental demand is rising, with vacancies decreasing, reflecting a shift in both consumer preferences and investor strategies.
Foreign Market Changes
The once-dominant Chinese investor market has slowed, influenced by economic uncertainties in China and safety concerns in Thailand. Conversely, Myanmar buyers are increasing their presence, attracted by security and educational opportunities for their children. The ease of travel from Mandalay or Yangon and cultural ties make Chiang Mai a preferred destination for Myanmar residents seeking long-term residence.
Additionally, demand from the US is growing, fueled by the new US consulate opening in Chiang Mai, which has increased staff from 200 to over 1,000. This has boosted demand for both purchase and rental properties, particularly in the upscale market segment.