Chiang Mai condominium market

New condo market in Chiang Mai growing up and booming again

Condos in Chiang Mai are the easiest and the most practical way to acquire to acquire property and many people especially retirees coming to live in this city are taking advantage of this.

Thus the year 2013 has seen a boom in Chiang Mai market after a period of stagnation.

In the past years, the condos in Chiang Mai market had drastically reduced due to many factors. Among them being the fact that, condos in the city were built with Thai market in mind. Thus they lack some of the key characteristics favoured by the westerner such as sizable balconies, natural and space light and kitchenettes. Also, many of condos in Chiang Mai are nearly empty or under occupied. And this air of abandonment according to the popular belief will not attract tenants whatever the price.

The Chiang Mai condominium market

Despite this, there are several buildings that are quite popular with the foreigners, usually because of their location, professional management and high level of comfort. Among some of the most popular buildings in Chiang Mai as per today include Hillside 4 and Flora. Hillside 4 close to KadSuanKaew Mall all located on HuayKaew road and the trendy Nimminhemin road, is in a steady demand especially by foreigners and has held its value due to proper maintenance. Flora on the other hand, is a bit expensive in comparison to Hillside 4 but equally popular.

The real estate growth that had ground to halt due to the 1997 financial crisis has regained a peak again. According to Colliers International and to the latest Chiang Mai Market Report, developers have started building there again and in the first 5 months of the year 2013 saw the greatest number of unit come into the market in the last seventeen years. These new units are being sold at prices that were around 11% higher than in the same period last year.

“There were more than six thousand units launched from the year 2011 to 2012 and approximately 1,840 units were launched within the first 5 months of 2013. Approximately 4,260 units or fifty four per cent of the total units that were launched from 2011 to May 2013 are located in the outer city, while 3,600 units are located in the city area,” said a company executive.

Buildings in the downtown area supply increased significantly in the year 2011, and the number of the town condominiums constructed in the last year were up on 2010. Despite the average selling price in the city being 14% higher than in the outskirts of the city, this trend is expect to continue until 2014, with 1800 outer city apartments due to be completed in the course of this year.