Is it still possible to “flip” condos in Chiang Mai?
At one time a year or so ago it seemed like everyone who was buying a condo in Chiang Mai was intending to “flip” it. That is: either buying the unit and holding it for a month or so before reselling at a profit; or buying a unit, doing some decorative or renovation works and selling it on to the next person at a higher price. Then there were the purchasers buying new condos off plan, putting down a smallish deposit and reselling the “right to buy” that unit to someone else.
All well and good! Values in the property market were rising, and buying and “flipping” condos made a pretty safe bet that there would be a profit at the end of the day.
But now we have over 50 new condo developments underway, plus countless new moo baans. The market is undoubtedly showing sign of slowing in pricing terms although, to be fair, the volume of trades is still there.
Margins on flipping on new condos have all but disappeared; condos in older, more popular blocks remain fairly tightly held.
So, is it still possible to make money by flipping? What do you think? Has the Chiang Mai market reached its cyclical peak? Are there too many new projects to make flipping possible? Please let us know your thoughts. Please comment below.
Perfect Homes is a leading Chiang Mai real estate agency with extensive experience in the city, regionally, nationally and internationally.