The Chiang Mai property market is becoming more and more interesting almost by the week.
Activity in condo sales remains very high—albeit that most of the transactions we are seeing involve second hand, older condos primarily within the confines of the super-highway. In fact, the rate of sales and leasing in this segment has easily surpassed last year.
However, newer, smaller, probably less well built condos (but which look “nice” to begin with) seem to have hit a resistance to the prices many developers have been asking—or maybe demand has simply dried up given that many people who planned to buy as an investment (or speculative punt!) now realise that there aren’t 1,000 new tenants coming to Chiang Mai every month to rent their condo located in the “back of beyond” somewhere off the road to nowhere….
Rentals in this sector are under pressure and sales generally sluggish
Then there are the so-called luxury condos in good locations in the city, or even on the river, where the initial price point is almost equivalent to Bangkok prices—the developers’ basic philosophy being that rich Thais from Bangkok will want a “pad” in Chiang Mai simply for their occasional jaunt here, and price just doesn’t come into the question. Sales are slow here too… for some reason!
So, being selective and smart, as ever, is the key; maybe you need a good agent!
What do you think? Does this aptly (yet briefly) summarise the current state of the Chiang Mai condo market?
Perfect Homes is a leading Chiang Mai real estate agency with extensive experience in the city, regionally, nationally and internationally.