Bangkok's new Chinatown: economic changes and implications
BANGKOK - As dusk falls, Bangkok's Huay Khwang neighborhood comes alive with Chinese-speaking passersby hustling to their favorite hot cutlet restaurants along Prasarat Bamphen Street. The hunger parade is just one sign of how an infusion of Chinese residents is transforming this 15 square kilometer area in the east of the city, with new arrivals restoring the pre-pandemic influx.
With the Chinese embassy located near Ding Daeng, which has a magnetic influence on Huay Khwang, local Thais are calling the area "New Chinatown." Some call it a special administrative region of China, similar to Hong Kong or Macau, nicknaming it "Taiguo". And while Thailand celebrates the new year, or Songkran, on April 13, Huay Khwang district officials held a Chinese New Year celebration on Jan. 19 this year to mark the changing demographics. Analysts say these changes come with challenges.
The rise in rents and prices of residential and commercial properties reflect the arrival of Chinese immigrants willing and able to pay more than local Thais, many of whom face housing affordability issues. Patchari Pabua, an employee of the nonprofit organization for 42 years, has lived and worked in Huay Khwang for more than seven years. She saw the neighborhood change in real time - before, during and after the pandemic, when the neighborhood transformed from Thai to Chinese settlement. "When COVID-19 first hit our country, many Chinese returned to China and Chinese businesses closed down," she said. - However, they returned when the COVID situation improved. Now it's hard to find Thai restaurants on Prasarat Bamphen Street. It is dominated by Chinese restaurants.
27 February
19
The arrival of so many Chinese businesses, almost all of which have a Thai partner to comply with foreign ownership restrictions, has driven up land rents. Many Thai business owners, unable to compete with wealthy Chinese immigrants, are forced to close their businesses. Only local Thais who own food tents that don't require land leases survive, say longtime Huay Khwang residents.
Pabua said the price hikes are centered on the cost of apartments. Lower-end apartments are still relatively affordable for Thais, with monthly rents ranging from 3,000 to 10,000 baht, or about $82 to $273. This price range suits many Thai people, whose average monthly income is about $382, according to statistics from the Ministry of Employment. Those prices also attract Chinese, who make up about 50 percent of the residents in her apartment complex, Pabua estimated.
The rental of apartments in Bangkok, which declined during the pandemic, has now reached new heights. Data from The List, a realtor website, for February 2020 shows the median monthly rent in Huai Khwang at $409. By May 1, 2023, rental prices for all apartments in Huay Khwang average about $622, according to property aggregator Dotproperty.
A former real estate agent Chitipat Inna, who specializes in representing properties in Huay Khwang and surrounding areas, said most of his rental clients are Chinese, often looking for short-term leases of three or six months. Chinese buyers don't seem to be paying attention to rising prices. Pabua, whose apartment in Huay Khwang costs $136 a month, said: "Unsurprisingly, most apartment tenants are Chinese, who often have larger living budgets. Many Thais simply cannot afford such rents.".
Comment
Popular Posts
27 February
19
Popular Offers
Subscribe to the newsletter from Hatamatata.ru!
Subscribe to the newsletter from Hatamatata.ru!
I agree to the processing of personal data and confidentiality rules of Hatamatata