Does size really matter?
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.