Why is land so expensive in Chiang Mai?

[falangUK]

I've heard that the cheapest land in the area is around 3 million baht per rai. Can anyone explain why this is the case?

 

Are there any factors contributing to the high cost of land in Chiang Mai?

 

Are there any areas or neighborhoods within the city that are more affordable for land purchases?

 

Any insights or information would be greatly appreciated.

[proton]

Depends where it is, access to electricity etc, where did you here it from?

[worgeordie]

They are not making anymore  , wish I had got the wife to buy more ,but at

the time interest rates were so high , 18 % at one time I thought i was better

having money in the bank,  now interest rates are well below inflation and

land prices are sky high, 

 

regards Worgeordie

[zzaa09]

13 minutes ago, proton said:

Depends where it is, access to electricity etc, where did you here it from?

He's heard....without knowledge of what is and what isn't. 

No where near B3 mil per rai in CM. 

 

Though, I will say that over the last couple of decades the price of common land has really gone outta site. 

Less the commercial variety. 

[FritsSikkink]

3 million baht per rai is nothing when compared to prices in Bangkok or Patong, Phuket.

When many people want to buy something and there isn't that much of it, prices go up. 

[falangUK]

24 minutes ago, proton said:

Depends where it is, access to electricity etc, where did you here it from?

Estate agents and directly from land owners. 

Location = about 20km from the city 

[falangUK]

9 minutes ago, zzaa09 said:

He's heard....without knowledge of what is and what isn't. 

No where near B3 mil per rai in CM. 

 

Though, I will say that over the last couple of decades the price of common land has really gone outta site. 

Less the commercial variety. 

No where near B3 mil per rai in CM >> so what's the going rate? Still can't find anything 15-20km from the city for less than 3 mil THB /rai

[falangUK]

21 minutes ago, worgeordie said:

They are not making anymore  , wish I had got the wife to buy more ,but at

the time interest rates were so high , 18 % at one time I thought i was better

having money in the bank,  now interest rates are well below inflation and

land prices are sky high, 

 

regards Worgeordie

Not a bad investment.  Cash or mortgage?  Looks a bit risky when as foreigners we can't buy land and have to use a proxy

[falangUK]

13 minutes ago, FritsSikkink said:

3 million baht per rai is nothing when compared to prices in Bangkok or Patong, Phuket.

When many people want to buy something and there isn't that much of it, prices go up. 

Out in the sticks in CM, 15-20km from city centre 

[Celsius]

Because Chiang Mai is like French wine. It only gets better with time

[ezzra]

A lady friend has 2 Rais of land with a good house on it for sale in San Sai 15-20 km from CM, PM me if interested in more details..

[metisdead]

A post has been removed as there was no helpful advice offered. 

[connda]

2 hours ago, falangUK said:

Are there any factors contributing to the high cost of land in Chiang Mai?

Endemic greed.

However, I think you'll see prices going down, especially in the city center.
Chiang Mai is moving outward.  The land surrounding the city is more valuable as bedroom communities pop up.

However - if you are observant, the land and property prices are starting to come down, i.e., deflation. 

Watch it.  The next few years should be interesting, especially for those with variable-rate loan for land and properties.

Edited January 28, 2023 by connda

[KhunLA]

If OP means 'in the city' vs province, then 3 mill may be a bargain in some neighborhoods.

 

Why ... they aren't making any more.  That ol' supply & demand thingy.

[nigelforbes]

2 hours ago, falangUK said:

Estate agents and directly from land owners. 

Location = about 20km from the city 

We're 22 kms from the City, North. Here, rice paddy is 12/15k tw, about 5 or 6 mill per rai, north Mae Rim. Head up the Mesa Valley towards Samoeng, 15 minutes away, 50 mill. and up, in many many locations.

Edited January 28, 2023 by nigelforbes

[bkk6060]

The Chinese will be buying and driving up prices there later this year.  You wait, they love CM and  will figure out ways to do it.

Also,  I would buy a condo now if looking as they are salivating get here and buy up condos big time sick of the suppressed way of life in China

A real estate boom I bet is just around the corner.

Edited January 28, 2023 by bkk6060

[redsongthaew]

1 hour ago, nigelforbes said:

Here, rice paddy is 12/15k tw, about 5 or 6 mill per rai, north Mae Rim

I never understand the pricing of rice paddy. Why pay 5 million baht per rai to buy when you can rent for about 1,000 baht per rai per year?

 

Perhaps a more knowledgeable member could tell us how many years it would take to earn 5 million baht from farming rice on 1 rai. I suspect it will be a very long time.

[nigelforbes]

3 minutes ago, redsongthaew said:

I never understand the pricing of rice paddy. Why pay 5 million baht per rai to buy when you can rent for about 1,000 baht per rai per year?

 

Perhaps a more knowledgeable member could tell us how many years it would take to earn 5 million baht from farming rice on 1 rai. I suspect it will be a very long time.

Because......if you buy 1 Rai at 5 mill., spend 3 mill. to build a nice house, in a nice location, the total value is worth more than the sum of its parts.

[ExpatOilWorker]

12 plots of land for sale, some more, some less than 3 million per rai.

 

https://www.kasikornbank.com/th/propertyforsale/search/pages/index.aspx?province=50&propertyType=01&

[1FinickyOne]

3 hours ago, connda said:

if you are observant, the land and property prices are starting to come down, i.e., deflation. 

well, the property near me has just gone up about 2.5x ... though they haven't sold it yet, I think they will... 

[1FinickyOne]

33 minutes ago, redsongthaew said:

I never understand the pricing of rice paddy. Why pay 5 million baht per rai to buy when you can rent for about 1,000 baht per rai per year?

 

Perhaps a more knowledgeable member could tell us how many years it would take to earn 5 million baht from farming rice on 1 rai. I suspect it will be a very long time.

if you buy, you get the price appreciation of the land - - 

[nigelforbes]

So many variables involved in the land price....made up, near a road, electric, access, paddy, not paddy, ultimately it's about location I guess.

[Adumbration]

4 hours ago, connda said:

Endemic greed.

However, I think you'll see prices going down, especially in the city center.
Chiang Mai is moving outward.  The land surrounding the city is more valuable as bedroom communities pop up.

However - if you are observant, the land and property prices are starting to come down, i.e., deflation. 

Watch it.  The next few years should be interesting, especially for those with variable-rate loan for land and properties.

Wrong.  Land prices are skyrocketing most places in Thailand right now.  I was just made a genuine offer of 900K for the little house I am currently in.  I bought it during covid for 270K.  Land up the road for me was selling for 2.4 million per rai.  Foreigner show up with his Thai wife/GF and just bought it for 4.3 rai.  Rents are skyrocketing as well.  I know of two seperate couples in Phuket.  Both were told their rent is going up by 50%.  When they objected their leases were terminated and they were given a month to get out.

 

Once upon a time things were crazy because of all the Russians here laundering money, then the Ruble crashed and their was a dire year or two, then the Chinese arrived and things were nuts again.  This time around both the Russians AND the Chinese are here.  Things are going to be twice as busy as they have ever been in the tourist areas.

[KhunLA]

3 hours ago, Adumbration said:

Wrong.  Land prices are skyrocketing most places in Thailand right now. 

Agree completely.

 

Locally, not CM, but agree, they.ve gone up considerably since we looked 8-9 yrs ago, bought 7 yrs ago, and last year.

 

8-9 yrs ago and 1 rai for the area, Prachuap Khiri Khan, not Hua Hin and not East side of Hwy #4/Phetkasem, and initially about ฿400k a rai +/-, which I didn't want, too large. 

 

We bought 1/4 rai (100 tw) for ฿76k. seven yrs ago.  Last year, bought lot across from ours, same, ฿250k, which I thought was silly, but wife wants a garden.   End of last year, 2 more lots, same size, on our small dead end soi sold, ฿450k, and corner lot for ฿600k.  

 

Oops, as I probably could have bought all for <฿100k each, seven yrs ago.

 

We bought a parcel of land, 6 rai for ฿720k (120 ea), 16 kms outside Udon Thani, and outside a small village, middle of nowhere, in 2010.  Divided up into 6 one rai lots.  Sold them 2019/20/22 for ฿500 (4) & ฿650k (2) each.

 

If you can find land well below market price, or better, at land office appraised price, then buy it.  7 of the last 8 lots we bought, were at land office appraised price.  Only the one across from our present house was not.

 

Same with the very first lot I bought, back in 2000, ฿50k for 1 rai, at land office appraised price, again, 16 kms outside Udon Thani, and not rice land, and didn't need backfill.

 

Some great investments out there, if wanting.  Or like myself, small turn overs, and you get to live here, rent/housing free for 23 years.  That give's one a bit more pocket money every month ... no rent, while building equity.  

 

Been doing that since my first house, over 40 yrs ago, in USA.

Edited January 28, 2023 by KhunLA

[falangUK]

Just now, KhunLA said:

Locally, not CM, but agree, they gone up considerably since we looked 8-9 yrs ago, bought 7 yrs ago, and last year.

 

1 rai for the area, Prachuap Khiri Khan, not Hua Hin and not East side of Hwy #4/Phetkasem, and initially about ฿400k a rai +/-, which I didn't want, too large. 

 

We bought 1/4 rai (100 tw) for ฿76k. seven yrs ago.  Last year, bought lot across from ours, same, ฿250k, which I thought was silly, but wife wants a garden.   End of last year, 2 more lots, same size, on our small dead end soi sold, ฿450k, and corner lot for ฿600k.  

 

Oops, as I probably could have bought all for <฿100k each, seven yrs ago.

 

We bought a parcel of land, 6 rai for ฿720k (120 ea), 16 kms outside Udon Thani, and outside a small village, middle of nowhere, in 2010.  Divided up into 6 one rai lots.  Sold them 2019/20/22 for ฿500 (4) & ฿650k (2) each.

 

If you can find land well below market price, or better, at land office appraised price, then buy it.  7 of the last 8 lots we bought, were at land office appraised price.  Only the one across from our present house was not.

 

Same with the very first lot I bought, back in 2000, ฿50k for 1 rai, at land office appraised price, again, 16 kms outside Udon Thani, and not rice land, and didn't need backfill.

Thank you very much for the detailed response :), how and where can I find out the land office appraised prices? what is the land office called in Thai?

[spidermike007]

7 hours ago, connda said:

Endemic greed.

However, I think you'll see prices going down, especially in the city center.
Chiang Mai is moving outward.  The land surrounding the city is more valuable as bedroom communities pop up.

However - if you are observant, the land and property prices are starting to come down, i.e., deflation. 

Watch it.  The next few years should be interesting, especially for those with variable-rate loan for land and properties.

Thailand may be due for a significant real estate price correction. Just wait and see. Will land prices come down? Very possible. 

[KhunLA]

12 minutes ago, falangUK said:

Thank you very much for the detailed response :), how and where can I find out the land office appraised prices? what is the land office called in Thai?

At the land office, and simply called 'provincial land office'.  Can also ask at the sub district office.  They tell you the appraised value for land, for the area your interested in.   They'll also have estimated housing cost, and usually runs between 10 - 15k m², and shows what silly prices some people pay for construction. 

 

Our purchases & builds have always been within those ranges, actually less, but we don't go all in full western style kitchens, which will even take it just above the 15k m².  We do, did use better building materials though; insulated block (not cinder or red), along with insulated rolled steel roofs.

 

Last and present house, were contracted at 10k & 11k m², +/-, respectfully.

Edited January 28, 2023 by KhunLA

[ExpatOilWorker]

4 hours ago, falangUK said:

Thank you very much for the detailed response :), how and where can I find out the land office appraised prices? what is the land office called in Thai?

https://assessprice.treasury.go.th/

[Adumbration]

11 hours ago, spidermike007 said:

Thailand may be due for a significant real estate price correction. Just wait and see. Will land prices come down? Very possible. 

Not a hope in hell.  Prices came down during covid as low as they are ever going to get.  Only thing that would cause a price drop is if China moves on Taiwan.

[BananaStrong]

I own 1 rai in the jungle, bought under my wife's name.

 

Put in a 29233923928 km pipe that sucks out all the oil from under Thailand.   I'm digging to the Sea of Oman!!!!!

 

In 1700 I told everyone to BUY, BUY, BUY!!!!!  But oh no, they wanted to go to Pattaya and spend their money!!!

 

I'm currently buying planets 100 light years from here.