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Does size really matter?

Does size really matter?

Does size really matter?

Chiang Mai Condos-4With seemingly ever increasing land and constructions costs and most developers fixated on maintaining profit margins, is it the consumer who is likely to suffer on the long term?

There are two key variables in the development process which developers look very hard at when costs rise and sales of new units are sluggish due to market conditions, such as we are now seeing in Chiang Mai. No prizes for guessing what these variables  are, but the first is usually means that the quality of new construction, finishes and fittings declines as corners are cut to save costs; secondly, the typical size of units is reduced as developers try to seduce purchasers into looking at the overall price to buy a unit, rather than consider exactly how many square metres they are getting for their money and how much each square metre will cost them.

Chiang Mai has never really been known for having that many large condo units but, in the past, when we used to regularly see 40-50m2 units, now we are seeing most new units with typically 32-38m2 (or thereabouts).

Does the purchaser care about size? Well, yes and no. If, as in many cases the units is for “investment” or even to be a weekend retreat from Bangkok or from another province, possible not. If the unit is to be a longer term residence, then clearly size matters.

Once argument, amongst others, for the continued popularity of older, larger condo units in the more central areas—in some cases, despite the unattractive exteriors of such buildings.

What do you think? Are smaller condos going to be able to attract purchasers or tenants over the longer term?

Perfect Homes is a leading Chiang Mai real estate agency with extensive experience in the city, regionally, nationally and internationally.

(5) Comments

  1. As the city is growing, prime land is getting more expensive, so developers have to compensate for those prices.
    One way of doing that is making the units smaller
    I personally like larger condos, but it is very interesting to see how the new condos are creative with their floorplans. They seem to be able to fit nicely appointed 1 bedroom condos in an area that used to be just enough for a studio. Sometimes with some very creative thinking…

    Reply
  2. Yes, I must say that I am really worried that there are so many small condos hitting the market. I visited one project and they were offering condos of 24 sq meters at nearly 2,000,000 Baht.
    No thanks, I am looking in the older buildings now. I would love to find an old shell to do up.

    Reply
    • Perfect Homes (Chiang Mai Properties)

      on   said 

      Hi Jim,
      Thanks for your comments on the size of condos in Chiang Mai. I tend to agree with you. It would not be that easy living in condo of 25 sq meters.

      Over the years most of the shells have been bought up. Though every now and then one hits the market. But you have to be extremely quick to get them.

      Reply
        • Perfect Homes (Chiang Mai Properties)

          on   said 

          Hi Monica,
          Compacted is the buzz word in real estate terms these day. Developers think “tiny” is a little negative.
          But I completely agree with you.
          Yours sincerely
          Perfect Homes

          Reply

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