Has the new, small condo market run the course of this cycle?
For those more experienced market observers, it was just a question of time.
Property cycles come and go and, no matter what people tell you, the new condo market in Chiang Mai is no different to property markets in any other part of the country, or the world, for that matter.
Basic economics tells us when demand is higher than supply, prices will go up. When the opposite, happens prices will drop—or at least consolidate or plateau at a level for a period of time.
So when every almost developer is building new, small condos of 20-45m2 and people are buying as “investments” [read: to speculate on], with no intention to live in them, it simply becomes a waiting game.
A number of factors are coming together currently: demand has dropped from out of town, local purchasers; projects are nearing completion and it’s time to put up the “real” money, not just the initial amounts to secure the unit or the monthly initial installments; plus, with the increased supply, there are so many units available to rent that rentals have dropped—below the level of loan or mortgage repayments for a standard loan package.
What to do? Firstly, if you need to sell, get real on price. Secondly, talk to a good real estate agent like Perfect Homes to get a “tell-it-like-it-is scenario”!
What do you think? Has the new condo market in Chiang Mai reached the top of its current cycle?
Perfect Homes is a leading Chiang Mai real estate agency with extensive experience in the city, regionally, nationally and internationally.