Plus Property’s newest research reveals that real estate growth is found to be closely linked to tourism growth in Chiang Mai and Khao Yai. Both cities offer natural attractions and have proven to be popular with domestic buyers as well as international ones.
There are 179 real estate projects in Chiang Mai with sales of 82 per cent from a total supply of 27,709 units. Plus Property added that overall demand increased 7 per cent with the best sales found in the Chiang Mai city area. Buyers from Bangkok often purchase property as vacation homes in the city. Plans to develop an airport in San Kamphaeng and a high-speed railway could see real estate prices continue to rise.
“The real estate market trend for Chiang Mai in 2017 shows a likelihood of demand growth, partly from the development of local infrastructure projects,” says Anukul Ratpitaksanti, Managing Director of Plus Property “There is also a trend of increased foreign demand for real estate in Chiang Mai, which is a popular city for foreign nationals. Foreign media outlets, such as The Huffington Post in the United States, have ranked Chiang Mai as one of the best real estate investment locations in Southeast Asia.”
In the Khao Yai area, there is a supply of 5,078 units and demand of 72 per cent with condominiums continuing to represent the biggest market. Research shows demand was best in the THB 60,000-80,000 per sq. metre price range. Demand came mostly from non-residents looking to purchase properties as vacation homes or for investment.
“As for real estate in the tourism city of Khao Yai, there is yet to be any significant recovery due to authorities inspecting land rights in many areas during 2014-2015; this resulted in some projects remaining under investigation and large property developers delaying new projects or cancelling sales for existing projects,” says Anukul. “Customers who wish to purchase vacation homes in this area are mainly Thai nationals. With about 20 horizontal and vertical projects expected to be completed in Khao Yai in 2017, the real estate trend for the area remains stable.”
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