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Property Markets in Chiang Mai Two or Three-Tier ?

Property Markets in Chiang Mai Two or Three-Tier ?

Increased salesTwo or three-tier market property markets in Chiang Mai

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

Luxury-Condo-MarketThen 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.

(4) Comments

  1. Stig

    on   said 

    The main reason the sales of older condos are doing much better than the new ones is because of the big price difference. New ones are 2 to 3 times the price of a let’s say 20 year old condo and sometimes they are located in the same Soi.
    In most big cities the location weighs much more on the price than in a small city like Chiang Mai. Interesting to see where all this is going but I predict that in a few years the older condos will have caught up in price with the new ones and location will be the main number one factor to determine the price.

    Reply
    • Perfect Homes (Chiang Mai Properties)

      on   said 

      Some good Points there Stig.
      Chiang Mai has an amazing spread in pricing for its condos I am not sure if you would find such a spread in many other cities.
      The Price per Sq meter in Chiang Mai goes from under 20,000 Baht a sq meter all the way to 180,000 Baht a sq meter. This is definitely a big spread.

      Reply
  2. Andrew

    on   said 

    Sounds like a healthy reality check. Older condos usually offer more space per bht and can demonstrate the quality of the ongoing management. Most new places I’ve seen are too small, often badly laid out and have unproven management, but nevertheless sky high ongoing fees.

    Reply
    • Perfect Homes (Chiang Mai Properties)

      on   said 

      Hi Andrew, I agree with your point on the older buildings they have normally gone full circle already and you can see what you are buying.

      Another issue that is coming to light is that the new buildings are setting the condo fees low while they are selling the properties. Then once the building is completed and in the hands of the juristic management. Everyone realizes that they need to increase these fees just to run the building.

      Reply

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