What is really selling? Year in brief review
Whilst the April/May and September/October periods have traditionally been the lows of the year (much like the tourist season), this year the lows as we used to see in 2012-2013 never really materialised. Even the so-called quiet months resulted in activity across the whole range of property assets type and in respect of both leasing and sales.
Noticeable, though, were the shifts in the types of assets being sought as the year progressed .
As one would expect with the relatively limited stock, demand for condos in the preferred city areas of Chang Klan/Charoenprathet and Nimmanhemin, with typical prices of Baht 2-7M remained strong year round for both leasing and sales. However, demand was light for condos between Baht 10-15M and almost non-existent for units above Baht 17-18M –mainly Penthouse units. Fundamentally, most potential purchasers with this sort of higher budget much preferred acquiring large homes.
New houses priced at the lower end of the market in the Baht 2-5M range remained in demand also, although resales again proved difficult.
Guest Houses remained in demand, although the twin impediments to most deals were a) existing tenants or owners asking far too much “key money” (the payment required to take over a [running] business) and b) the perception that business was down on last year, with 2016 maybe also not likely to be quite as healthy as this.
The first half of the year saw continued demand for land in smaller parcels of 1-10 rai, only for this demand to drop off towards the latter part of the year; many large sites and those where the pricing is well above market levels remain as available.
The second half of the year saw a pick-up in demand for factory and warehouse space with a number of new businesses planning to open to existing ones wishing to expand which augurs well economically for 2016, plus new tenants were emerging for retail space outside of the core areas.
So, all-in-all, a very solid year, with more of the same likely for 2016!
What do you think, will the CM property market continue to be strong next year? If so, on an overall basis or by specific sector? Write and let us know, we like to hear your views…
Perfect Homes is a leading Chiang Mai real estate agency with extensive experience in the city, regionally, nationally and internationally.