According to the recently published Colliers Chiang Mai Condominium Report, 72 percent of condominiums in Thailand’s second city are one-bedroom units, while the average selling price in the city is THB 34,160 per sqm.
Statistics from the Department of Land published in report noted there are approximately 16,580 condominium units in the city. More than 2,854 units were launched between 2011 to May 2012, of which approximately 1,090 units are situated in the city and 1,760 in the outer city area.
As of May 2012 there were approximately 3,000 units under construction and scheduled for completion by 2013. Although most condominium projects were launched in 2011, the average take-up rate in the city is now reported to be 76 per cent.
Average sales prices in the outer city area are 13 percent higher at around THB 38,650 per sqm versus approximately THB 34,160 per sqm in the City area.
In its report Colliers noted that the real estate market in Chiang Mai will continue to grow as a result of government and private sector projects. Locals prefer landed property, and many landed development projects were launched in the past few years, however the new generation of people from Chiang Mai and other provinces, as well as foreigner buyers and investors, are choosing to live in condominiums.
Local developers are very well known and have acquired a high market share with just a few projects. Some listed developers from Bangkok have also launched condominium projects and were rewarded with very high sales volumes. However there is unlikely to be much movement in the market over the coming months and developers will likely pause while trying to build brand loyalty with their current offerings.
Some condominium projects are planned for the second half of 2012, most of which are in the outer city area and targeting the middle income market. The average price of condominiums launched during the first five months of this year was up by around 5.5 percent, Colliers reported.
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