House Price Growth in Chiang Mai Region ?

[freedomnow]

Has anyone found, or just knows what kind of percentage price growth has been happening for houses generally in Chiang Mai City and surrounds ?

 

Or even a money figure on say 2 million....like 100k or 150k value increase  year assuming place taken care of and reasonable demand for the area.

 

[freedomnow]

I think it is harder to sell older than 10-15years as they start to depreciate not appreciate...run-down...ghosts etc ????  So I meant to say it was regarding new build well maintained and sold after maybe 5 years...not a question about who owns it or how to own it, or risks of owning it.

 

[Peterw42]

You will find there is not much data available to do with property etc. its not like real estate in the west where you can pull up data for a town, a suburb, last 5 sales in the street, percentage gain/loss etc. Some developments/areas rise, others fall, with no consistency.

Any data available usually refers to current asking price "not" past sales etc, a 10% rise in asking price means nothing if no sales at that price.

Actual sales prices can be half the asking price and unless you were the person who did the buying or selling, its not public knowledge.

The price for a house in a newbuild moobaan could be 2 million off the plan, 2.5 after its built and 1.8 to get rid of the last 10, 2.3 for a resale, those sales arent really recorded anywhere. The guy who bought at 1.8 and sold at 2.3 made money. the guy who bought off the pretties in the sales office for 2.5 will loose if trying to sell.

[Lacessit]

Chiang Mai has so many gated communities sprouting up like weeds one should be thinking of price depreciation instead of price appreciation. Some are constructed out of toad shit, sealing wax and duct tape, so they'll fetch half new price after 10-15 years.

[1FinickyOne]

generally speaking, land prices increase and physical property depreciates... when it comes to houses, from what I have seen, it is not that easy to sell... especially in the gated communities... 

 

as to your 2 million figure, very very little in that price range for houses/w property... and not so nice. 

[bkk6060]

Who knows.

There is absolutely no transparency or MLS in Thailand real estate.  It is a huge guessing game that I believe is a foolish investment.

And any savy buyer will take into consideration the exchange rate from a few years ago.  But buyers do not want to sell for less then they paid the result being like Pattaya, with over 11,000 properties currently for sale.

[peterb17]

Cough cough - with the constant pollution, the uncertainty of the elections , world wide recession- it’s not a good idea to see a home as money spinner.

 

Buy a home to live- nothing more . 

[Kenchamp]

9 hours ago, bkk6060 said:

Who knows.

There is absolutely no transparency or MLS in Thailand real estate.  It is a huge guessing game that I believe is a foolish investment.

And any savy buyer will take into consideration the exchange rate from a few years ago.  But buyers do not want to sell for less then they paid the result being like Pattaya, with over 11,000 properties currently for sale.

Why would any shrewd buyer take into consideration the exchange rate from a few years ago? Are you saying that you expect the Baht exchange rates to soon go back to where they were before, and that it would be "savvy" to wait for that?

[freedomnow]

From a quick glance of DD property - they do have a tab for sales history in any small area it seems for past 5 years..but yes, I hear what everyone is saying above...it is just down to what you and the buyer negotiate and sales history is not so  strong a support of determining price.

 

I think rent-free after all fees would be a lucky end result....hahaha.

[baansgr]

I would think the question should be what percentage of devaluation  has there been over the past 5 or 10 years. I'm all for ownership over renting but Thailand is a different  kettle  of fish with the extorinate taxes and skewed ownership regulations. 

[BritManToo]

On 2/28/2019 at 1:32 PM, freedomnow said:

Has anyone found, or just knows what kind of percentage price growth has been happening for houses generally in Chiang Mai City and surrounds ?

The large company that built my estate charged 1.7M in 2014, 1.8M in 2015, and now 2.4M in 2019.

Identical houses on same size plots. (3 bed, 3 shower)

 

What you could sell them for 2nd hand, I have no idea as nobody has managed to sell one second hand yet.

Plenty sitting empty though.

[puukao]

Assume you will lose 100%.  If you only lose 99%, well, you made 1%.  

 

if the market is impossible to decipher, you are the sucker....

[BEVUP]

Do Amphurs or Banks valuate properties ?

Dealing with Center Link in Auss & they may expect one. We don't get Council rates like the West which state valuation.

[BritManToo]

1 hour ago, puukao said:

if the market is impossible to decipher, you are the sucker....

The market is totally skewed by the mortgages.

A new house can be sold with a mortgage which most buyers can't get on their own for a second hand property.

(dodgy dealings between mortgage suppliers and housing developers)

 

To buy second hand most people would need to make a cash purchase.

That was the only choice I was given.

[sammieuk1]

From my experience over the last 10 years prices only go one way and that's down Thais are not keen on buying old houses where someone could have died when you can buy a brand new one cheaper my neighbour wants to sell at 3.5m when there are still many unsold new at 2.7m after adding a few tasteless additions, the rental market is just as bad from what I see with rents being asked far in excess of earnings leading to a multitude of empty decaying buildings on every estate ????

[jackdd]

The price of a house itself just decreases, the only thing which increases is the price of the land.

Just in the very center of cities (in a city like Bangkok this center is of course bigger, and in a city like Pattaya the land near the sea also falls in this category) does the price of the land increase more than the price of the house decreases.

 

In case you buy a house in the suburbs the property price will hold its value (which is actually a loss due to inflation) if you are lucky, and decrease if you are unlucky.

I'm currently looking for a house to rent in Chiang Mai, so i was looking at various properties, and it looks like there are just countless of "moobans" in Chiang Mai, i highly doubt you will see any price increase there. From what i've seen the only price increase is from the off plan phase to when the houses are finished, but this is not an increase because the value increases, but the price increases because the risk gets lower.

 

Same here in the suburb of Udon Thani where i currently live. The mooban was built in 2015, since then the developer is selling the houses for the same price (about 2 mio). The owner of the house where i live is trying to sell his house, he is asking for 2 million, the same price that he bought for. But a buyer can choose to get a completely new house for 2 million, where everything will be made new, or he could buy a house which was lived in for 3-4 years, which has of course some wear and tear, the cheap furniture starts breaking down, and so on. Of course any buyer would get the new house, and if the owner of the house here wants to sell it he can only do so with a loss.

[chrisandsu]

Personally I’d never buy on a moo ban unless it was on let’s say a golf course where the upkeep of the properties is a lot more stringent. On a normal moo ban The neighbours houses look like crap after a couple of years due to the lack of  maintenance . On the other hand if you buy on a plot of land just remember you can never be sure that a factory will never get built right next door ! Rent don’t buy .

[freedomnow]

On 3/13/2019 at 5:12 AM, chrisandsu said:

Personally I’d never buy on a moo ban unless it was on let’s say a golf course where the upkeep of the properties is a lot more stringent. On a normal moo ban The neighbours houses look like crap after a couple of years due to the lack of  maintenance . On the other hand if you buy on a plot of land just remember you can never be sure that a factory will never get built right next door ! Rent don’t buy .

Good notes on 2 points, that the area goes to s***t with all these weird funky against regulation upgrades and that yes, you could have a metal grinder next to you suddenly.

I just never knew about the property itself decreasing/land increasing mix so overall the land was boosting the value not the desirability of the property so much.

 

Does anyone know the life of concrete bungalows..in my home country they are still looking good after 70 years, but here they will probably crumble due to cheaper materials.

Also looking at bungalows here, if you wanted to add on another floor, I think you'd have to use iBeams taking the weight working from deep separate foundations as the foundation stage does not look too deeply laid for 1-floor houses from what I have seen.....even if they do hang bananas on the steel pillar frames...haha...no idea what that is about, fruit on the structrure.....mumbojumbo Myanmar ritual or something.

[chrisandsu]

18 minutes ago, freedomnow said:

Good notes on 2 points, that the area goes to s***t with all these weird funky against regulation upgrades and that yes, you could have a metal grinder next to you suddenly.

I just never knew about the property itself decreasing/land increasing mix so overall the land was boosting the value not the desirability of the property so much.

 

Does anyone know the life of concrete bungalows..in my home country they are still looking good after 70 years, but here they will probably crumble due to cheaper materials.

Also looking at bungalows here, if you wanted to add on another floor, I think you'd have to use iBeams taking the weight working from deep separete foundations as the foundation stage does not look to deep from what I have seen.....even if they do hang bananas on the steel pillar frames...haha...no idea what that is about, fruit on the structrure.....mumbojumbo Myanmar ritual or something.

As beautiful as the weather can be it causes havoc on a property in Thailand . I have always thought Thais have the right idea , why worry about maintenance when they can just save that money and buy a new one once the old one falls down around their ears ? I know so many Thais with mulitiple properties -they love them when they are new and shiny then move onto the next one once it looks like crap ! The only investment they see is to live in it and not the appreciative value . 

[jackdd]

I've been looking at houses (to rent) in Chiang Mai, and here a real example of a house i've been looking at:

The house is in the moobaan called "The Prominence Chiang Mai" near Promenada Mall. The owner bought it offplan for 3.8 million THB a while ago, the house was finished about 4-5 years ago.

The same type of house sold directly by the developer today is advertised for 4.7 million THB. The owner tried to sell this house for a profit (so more than 3.8 million) for the last 4-5 years, but nobody wanted to buy it.

Since he can't sell it the owner decided to offer it for rent for 20k THB.

So not even with a speculative offplan purchase of a house in a quite good location he was able to make a profit.

[baansgr]

1 hour ago, jackdd said:

I've been looking at houses (to rent) in Chiang Mai, and here a real example of a house i've been looking at:

The house is in the moobaan called "The Prominence Chiang Mai" near Promenada Mall. The owner bought it offplan for 3.8 million THB a while ago, the house was finished about 4-5 years ago.

The same type of house sold directly by the developer today is advertised for 4.7 million THB. The owner tried to sell this house for a profit (so more than 3.8 million) for the last 4-5 years, but nobody wanted to buy it.

Since he can't sell it the owner decided to offer it for rent for 20k THB.

So not even with a speculative offplan purchase of a house in a quite good location he was able to make a profit.

What does the 20k rent get?...i would hope fully furnished, western full kitchen, three beds and baths, 100 taleng wah with a small pool and carport...

[jackdd]

37 minutes ago, baansgr said:

What does the 20k rent get?...i would hope fully furnished, western full kitchen, three beds and baths, 100 taleng wah with a small pool and carport...

Here the details: https://www.ddproperty.com/en/property/new-house-for-rent-and-sale-close-to-payap-university-promanada-mall-in-chiangmai-บ้านใหม่สวยให้เช่าเฟอร์นิเจอร์พร้อมอยู่ไกล้มหาลัยพายัพ-ห้างพรอมเมนาด้า-เชียงใหม่-for-rent-3069695

Usually this house would have a master bedroom + two small bedrooms, but the owner left the wall between the small bedrooms out, which i actually liked (i don't need three bedrooms for 2 persons, and like a bit more space). Aircons for the bedrooms, fridge, TV and so on would be bought by the owner.

After having looked at many ads and more than 10 houses in real, in my opinion the rental price is reasonable for what you get in this location. But the owner failed to give this house a retouch inside and outside (of course it deteriorates over the years, even if nobody is living there) before showing it to potential tenants, so my girlfriend didn't like it and it was out.

[Halfaboy]

The house looks oke to me and if I could get it for 20.000 Baht / month I would take it. No problems doing a little painting myself.

[chrisandsu]

7 hours ago, jackdd said:

I've been looking at houses (to rent) in Chiang Mai, and here a real example of a house i've been looking at:

The house is in the moobaan called "The Prominence Chiang Mai" near Promenada Mall. The owner bought it offplan for 3.8 million THB a while ago, the house was finished about 4-5 years ago.

The same type of house sold directly by the developer today is advertised for 4.7 million THB. The owner tried to sell this house for a profit (so more than 3.8 million) for the last 4-5 years, but nobody wanted to buy it.

Since he can't sell it the owner decided to offer it for rent for 20k THB.

So not even with a speculative offplan purchase of a house in a quite good location he was able to make a profit.

I think you meant to say ‘unable’ to make a profit . He couldn’t sell it remember ? 

[BritManToo]

4 hours ago, jackdd said:

Here the details: https://www.ddproperty.com/en/property/new-house-for-rent-and-sale-close-to-payap-university-promanada-mall-in-chiangmai-บ้านใหม่สวยให้เช่าเฟอร์นิเจอร์พร้อมอยู่ไกล้มหาลัยพายัพ-ห้างพรอมเมนาด้า-เชียงใหม่-for-rent-3069695

 

He'll be lucky to get 10k/month that far out, and that small, with the other houses so close, but he might find a foolish foreigner.

[BritManToo]

5 hours ago, baansgr said:

What does the 20k rent get?...i would hope fully furnished, western full kitchen, three beds and baths, 100 taleng wah with a small pool and carport...

In this case it would get you 2 beds, and 50 TW.

If you wanted a pool, it would need to be in the living room, as there's only enough space outside to walk round the house.

[NCC1701A]

who's windows are those looking out your windows?

[chrisandsu]

12 hours ago, BritManToo said:

He'll be lucky to get 10k/month that far out, and that small, with the other houses so close, but he might find a foolish foreigner.

Do you reckon his choosy gf is paying half the rent ?