Chiang Mai Rental Transactions 2023

Table of Contents

• Chiang Mai Rental Report Index
  • What to Look Forward in 2024: Rental Market Insights
• Popular Rental Properties in Chiang Mai 2023
  • Condos
  • Houses / Villas 
  • Standalone Houses
• Popular Areas to Rent a Property in Chiang Mai
  • Hang Dong
  • Mae Khue
  • San Sai
  • Mae Hia
  • Chang Khlan
• Chiang Mai Rental Preferences
• Wrapping Up

Chiang Mai rental market is gearing up for growth in 2023, reflecting the positive momentum in Thailand's broader real estate industry. Houses, condos, and townhouses in Chiang Mai prices increase by 5-10%. 3-bedroom condos emerged as the most sought-after properties to buy in Chiang Mai. Real estate prices jump also includes new projects in the year's second half. Our article below presents what is driving these changes in Chiang Mai rental Market. 

Chiang Mai Rental Report Index

In the first half of 2023, Chiang Mai rental market demonstrated significant growth. Quarter-on-quarter (QoQ) rental prices rose by 6% compared to the same period in 2022. It is a noticeable jump from the previous year, with a 4% increase, pointing out an enduring appeal to locals and expats living in Chiang Mai. In 2023, the city saw an impressive 8% YoY growth in rental demand, up from 6% in 2022, emphasizing the steadily rising appetite for Chiang Mai rental properties.

A few trends emerge when you examine the specific rental market in Chiang Mai by property type. Houses experienced a 5.5% growth in QoQ rental prices and a 7.5% YoY increase. It emphasizes their consistent appeal among renters, likely because of the space and privacy they offer. 

Condominiums in Chiang Mai experience a notable uptick with a 6.5% rise in QoQ rental prices and an even more impressive YoY growth of 9%. What drives this surge? The influx of urban professionals and expats, particularly digital nomads, flocking to Chiang Mai is a significant factor. The city is a hotspot for these tech-savvy wanderers because of its modern amenities and proximity to the city center. Chiang Mai perfectly blends traditional charm and contemporary conveniences, making it an irresistible hub for digital nomads. By this continually increasing trend, we can expect the condo rental market in Chiang Mai to thrive even more.

Meanwhile, townhouses marked a 5% QoQ increase and an 8.5% YoY rise. The steady demand suggests that renters appreciate the urban convenience and spacious living balances that townhouses provide. The occupancy rate remained strong at around 90%, indicating a healthy demand-supply balance in the city's rental market.

What to Look Forward in 2024: Chiang Mai Rental Market Insights

Given the robust growth patterns observed in 2023, the rental market in Chiang Mai is poised for another year of promising dynamics. The sustained increase in rental prices, both QoQ and YoY, across all property types underscores a thriving demand, and below is what it suggests for 2024:

• Sustained Demand for Houses: Why do we see such a trajectory in the housing market? There are several factors. Firstly, the past year showed a 7.5% YoY increase in 2023, indicating a robust and growing market. The growth is a blip and reflects changing preferences among renters. More and more people value space and privacy, especially after recent global events emphasizing personal space's importance. This shift in taste is not just a temporary reaction but a more permanent change in what renters seek.
  
  I anticipate a similar or even higher trajectory in 2024 by examining these trends. With houses already registering a 5.5% growth in QoQ rental prices, it's clear that the demand is there. As long as renters prioritize space and privacy, the need for houses will likely remain strong, driving up rental prices even further.
  
  
• Condos Remain a Hot Favorite: The 6.5% QoQ and 9% YoY growth in condo rental prices indicate a strong inclination towards urban living. As more professionals and expats move to Chiang Mai, lured by modern amenities and the city center's convenience, condos will remain in high demand. We may see an even steeper growth rate in 2024 as the city's urban appeal strengthens.
  
  
• Stable Appeal of Townhouses: The balanced features of townhouses, offering both urban convenience and spacious living, have marked their place in the rental market. With a 5% QoQ and 8.5% YoY growth in 2023, townhouses might witness a similar or slightly increased demand next year.

 

Popular Rental Properties in Chiang Mai 2023

Chiang Mai's most sought-after rental properties revealed unique trends in the first half of 2023 providing insight into the tenants' preferences. Below is a breakdown of the rental property types in the area sourced from FazWaz.com website and covering data from January to August 2023.

Condos

Condos took the lead in popularity accounting 44.4% of all transactions. A total of 32 condo units changed hands with a median rental price set at THB 23,500 per month. Diving deeper into the condo category, 3-bedroom condos were the most sought-after with 22 units being rented out. This was closely followed by 1-bedroom condos with 16 units, and 2-bedroom condos saw a transaction of 14 units. Among popular Chiang Mai condos for rent are Peaks Avenue, Sky Breeze Condo, Pingdoi Lakeville, etc.

Houses / Villas 

Houses within development projects took a notable spot in Chiang Mai's rental properties, accounting for 33.3% of the total transactions. During this period, 24 units were rented, each fetching a median price of THB 32,500 monthly. Among the standout rentals was a 4-bedroom villa at Plover Cove, which went for THB 56,000 monthly. Other popular housing projects included Siwalee Choeng Doi and Karnkanok 2.

Standalone Houses

Lastly, standalone houses comprised 22.2% of the rental transactions in Chiang Mai. In total, 16 of these houses found tenants with the median rental price being THB 47,500 per month. This suggests that a segment of tenants has a distinct preference for premium standalone living spaces. Notably, a grand 7-bedroom standalone house in Mae Hia was listed as the highest rental going for THB 120,000 per month, while a more modest 3-bedroom house in Mueang Chiang Mai marked the lowest on our list, rented out at THB 22,000 per month.

The data from the first half of 2023 provides a clear picture of Chiang Mai's rental property landscape with condos being the preferred choice, especially three-bedroom condos.

Popular Areas to Rent a Property in Chiang Mai

After a vibrant first half of the year, Chiang Mai property market for rental properties maintained a strong landlord-centric trend throughout H1 2023. Rental prices in Chiang Mai's sought-after areas were consistently appreciated, driven by heightened demand from a surge of new residents. More and more people are noticing how peaceful and full of culture Chiang Mai is, making it one of the top choices in Thailand. 

Our H1 2023 rental market report shows that many people are seeking properties in Chiang Mai, both for holiday homes and work-related stays. They're particularly interested in the following areas:

• Hang Dong
• Mae Khue
• San Sai
• Mae Hia
• Chang Klan

Hang Dong

Hang Dong shines as the top rental destination in Chiang Mai. The median rental price here is THB 66,000 per month, primarily driven by its array of standalone houses that appeal to many tenants. One reason they chose Hang Dong is because of serenity. Hang Dong offers a peaceful escape from the bustling city while being conveniently accessible. Beyond this, spacious properties, lush surroundings, and local amenities are ideal for tenants seeking comfort and culture in Chiang Mai.

Mae Khue

Mae Khue, located in Doi Saket, settled the second position in Chiang Mai rental popularity rankings. It's particularly renowned for its houses under development projects with a median rental price of THB 56,000 per month. The appeal of these housing projects in Mae Khue is various. Firstly, they offer modern amenities combined with the traditional charm of the region. Additionally, being in Doi Saket, tenants get to experience a blend of tranquility and community making it an attractive location for those wanting a serene yet connected living environment.

San Sai

San Sai, located just north of Chiang Mai city, captured the third spot with properties fetching a median rent of THB 50,000 per month. Well-designed condos and gated community villas are particularly famous in the area. Many people rent properties in San Sai because they offer a blend of luxury and security, all set against beautiful landscapes. Additionally, nearby amenities and a tranquil setting make it a favorite for those seeking the best city and suburban life.

Mae Hia

Mae Hia, nestled to the southwest of Chiang Mai's bustling center, secured the fourth spot with properties commanding a median rent of THB 40,000 per month. The area is famous for its roomy standalone houses and beautiful garden estates. People love its peaceful surroundings mixed with a touch of local character and modern comforts. Many choose here for its close connection to nature and essential services while providing a calm place to live.

Chang Khlan

Chang Khlan stands out with its attractively priced properties boasting a monthly median rent of THB 39,300. The area is celebrated for its modern condos, attracting young professionals and expats. They decided to rent Chang Khlan condos because of their contemporary designs, amenities, and vibrant neighborhood vibe. Chang Khlan, in the heart of Chiang Mai, offers easy access to shopping, dining, and entertainment, making it a top choice for those who love city living without the hefty price tag.

Popular Area	Property Type	Bed No.	Avg. Rental Median Price
Hang Dong	Standalone House	7-bedroom	THB 66,000
Mae Khue	House-Project	4-bedroom	THB 56,000
San Sai	Standalone House	7-bedroom	THB 50,000
Mae Hia	House-Project	5-bedroom	THB 40,000
Chang Khlan	Condos	1-bedroom	THB 39,300

Chiang Mai Rental Preferences

Regarding the data from FazWaz.com website, it reports the following preferences for rental properties in Chiang Mai:

• Standalone Houses: These properties in Chiang Mai are particularly attractive to Koreans, Thais, and New Zealanders. The reasons for their preference include the privacy and spaciousness of standalone houses. Koreans find the independent nature of these houses reminiscent of their traditional homes, while Thais could appreciate the blend of modern and traditional designs. On the other hand, New Zealanders might be drawn to the expansive outdoor areas that many standalone houses in Chiang Mai offer, reminiscent of the open spaces back home.
  
  
• Condos: These are popular choices among Koreans, French, and Chinese. Condos in Chiang Mai often come with modern amenities and security. They are usually in central areas making them convenient for urban living. Koreans appreciate the community feel of condos while French love the blend of Eastern and Western designs. Chinese see condos as comfortable living and a potential investment opportunity known for their investments in real estate globally.
  
  
• House-Projects: Houses or villas under development projects are renowned among the Japanese, Canadian, British, and Chinese. House-projects often provide a balance between community living and individual space. The Japanese might appreciate the meticulous design and planning that goes into these projects, mirroring the precision they're accustomed to back home. Canadians and British might be drawn to the sense of community and the blend of local and Western architectural influences. The Chinese might see these projects as both a residential and investment opportunity, given the growth potential of Chiang Mai's real estate market.

Wrapping Up

Chiang Mai rental market in 2023 shows robust growth reflecting the growing appeal to locals and expats in the city. Three-bedroom condos emerged as the top choice for renters while areas like Hang Dong and Mae Khue became prime rental destinations. International tenants have diverse preferences from standalone houses to condos showing how versatile Chiang Mai is in meeting different tastes. As the demand continues to surge, Chiang Mai's rental landscape promises even more dynamic shifts in 2024. Investors and tenants alike, therefore, should always update on the thriving market to capitalize on upcoming opportunities.

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