The words forming the title of this blog, according to many people, are the three most important words in real estate.
Yes, certainly true when it comes to commercial property such as retail shops, restaurants etc and residential properties in large cities where land is scarce and inner city traffic congested and travel difficult; or in locations where the is some truly unique feature(s) or landmark.
Yet in a smaller city such as Chiang Mai which has a good road system (almost 3 ring roads!) and generally few traffic problems, just how important is location? And, when there are amenities such as supermarkets, banks and hospitals and schools spread out fairly consistently around the city, just what constitutes the best location for a residential property here?
Why do we ask this last question?
Well, for every owner of property we meet, or contacts us wanting to sell or rent their property, over 90% of them, tell us: “…but my property is in the best location…”
Sure, if you have a prime shop at Tha Pae Gate, or commercial unit with main road frontage in Nimman or in the night bazaar, the location is key and values can change dramatically within a few metres … but generally for residential properties, just what constitutes the best location in Chiang Mai?
Indeed, we have clients who want:
- to be near the airport and those who don’t
- to be in the city near to banks, 7/11s, bars and restaurants, and those who come to CM to get away from big city noise and pollution and find their outer city neighbourhood stores and restaurants to be just fine
- to have a condo with a great view near the Ping River well away from the city’s bustle, and those who want to live as near as possible to Central Festival
- to live near “xyz” school for the benefit their children and those who don’t mind their children travelling 30-45 minutes each way as that’s what they’d do in Hong Kong or Beijing or London
- to be accessible to most places in CM within 20-25 minutes… and those who are happy to drive in to the city once or twice per week from 60 or so minutes away
This list is not meant to be exhaustive but the key point of the article is that in CM, quite simply, almost without exception, every location is a good location, each with its plusses and minuses—and the overall impact of similar locations on residential values is not overly material (of course, values will differ if you have a house in the old city compared with one in Doi Saket…)
In fact, possibly one of the best the best ways to illustrate the relative insignificance of similar locations on residential values in CM is as follows: in Nimmanhemin between Sois 6-8 there are 3 residential blocks close to each other; one is 2 years old, one about 7-8 years old and the last one 15+. In descending order, prices per m2 go from 85-90k/m2, to 60-65k/m2 to 40-50k/m2… yet the same location!
So, next time you have someone tell you they have the best location, take a moment and asks them to define just what they mean by this statement and, if they give a great, convincing answer, be sure to let us know and we’ll tell all of our clients who swear, No… they have the best location!
What do you think, any comments on this or on your own location?
Perfect Homes is a leading Chiang Mai real estate agency with extensive experience in the city, regionally, nationally and internationally.