Chiang Mai Property Market...your Views?

[xenophanes]

The November issue of Tropical Living in Thailand magazine is running a Chiang Mai theme and I would be most grateful if any Thai Visa member residents, estate agents or developers would assist with the following questions.

Please let me know your name and status for use in quotes and if you would rather send these by private message, please do.

Many thanks in advance.

1. In recent years, what are the most notable changes in Chiang Mai's infrastructure?

2. What are the property hot spots in Chiang Mai city, and why are these areas so popular?

3. What type of property is in trend in these areas and what kind of buyers are they attracting?

4. What is the price range difference of property / land in the popular areas in Chiang Mai city with more country locations outside the city.

5. How do foreigners and Thais differ in terms of what they want from a property in Chiang Mai?

6. What problems are developers facing at the moment?

7. What advice do you have for buyers in Chiang Mai?

8. What are the well respected developments in Chiang Mai?

9. What is the recent Capital Appreciation of property?

10. If you are a Chiang Mai resident, how would you describe lifestyle?

[Asmerom]

The November issue of Tropical Living in Thailand magazine is running a Chiang Mai theme and I would be most grateful if any Thai Visa member residents, estate agents or developers would assist with the following questions.

Please let me know your name and status for use in quotes and if you would rather send these by private message, please do.

Many thanks in advance.

How much are you paying per hour?

[WinnieTheKhwai]

1. In recent years, what are the most notable changes in Chiang Mai's infrastructure?

- Ring roads with tunnels at major intersection channel development away from the historical old town and are very convenient to get somewhere fast.

- Internet is just about everywhere either WiFi or now 3G and then of course EDGE if the other two aren't there.

- More varied nightlife

2. What are the property hot spots in Chiang Mai city, and why are these areas so popular?

There's basically 'in town' and then 'out of town'. Out of town in any direction is all pretty similar, it depends on personal preference. In Town the absolute hot spot is the general University area, especially Nimmanhaemin Road. Hot spots == high price.

3. What type of property is in trend in these areas and what kind of buyers are they attracting?

In town you see more up-market yet somewhat smaller scale and nicely built condominiums going up. Out of town space isn't an issue so you're more likely to find houses (either inside a gated development or not), and available land to build your own.

4. What is the price range difference of property / land in the popular areas in Chiang Mai city with more country locations outside the city.

Buy or rent? Condo's in town are more expensive than houses out of town. In town for a nice condo with a couple rooms (anything more than just a studio) will set you back 4-5 million baht or more. Houses out of town start around 2 million (2 floor, 3 bedroom, small garden) and go up from there.

5. How do foreigners and Thais differ in terms of what they want from a property in Chiang Mai?

Thais like to be close to main road, and generally have road access and are willing to pay extra for it. Westerners tend to like it a bit quieter and don't care as much is they're way down a soi. Many Westerners don't want to buy or lease a house when someone else (wife, etc) owns it so they end up going for a condo unit because they get to own it in their own name.

6. What problems are developers facing at the moment?

Economic crisis and not having a lot of money available, also finance harder to get for potential buyers. On the other hand, construction materials have come down in price a bit.

7. What advice do you have for buyers in Chiang Mai?

Live & rent for a long time before deciding what your preference is, both in location and in terms of the most suitable type of house/condo. Typically this changes over time too; a lot of people want to be in town because they don't initially drive a car. Then later they might settle a bit out of town where it's quieter and cheaper.

8. What are the well respected developments in Chiang Mai?

Koolpunt Ville, Land and House, Ban Nai Fun.. But take it as a case by case basis, no guarantees.

9. What is the recent Capital Appreciation of property?

There isn't any. The only appreciation is on the land. The building depreciates just like a car does. (Perhaps a bit slower) If you maintain it well then the only 'appreciation' is due to price of construction materials and labour going up, meaning that building a similar house is relatively more expensive. For Condominiums it's a complete casino: A handful of condominium buildings are maintained well and are in a good location so the value of these goes up, or at least it doesn't go down. For many, MANY others through, they go down the drain badly. At least with "your own" house, you control maintenance yourself.

10. If you are a Chiang Mai resident, how would you describe lifestyle?

Family man.

Edited September 11, 2009 by WinnieTheKhwai

[xenophanes]

1. In recent years, what are the most notable changes in Chiang Mai's infrastructure?

- Ring roads with tunnels at major intersection channel development away from the historical old town and are very convenient to get somewhere fast.

- Internet is just about everywhere either WiFi or now 3G and then of course EDGE if the other two aren't there.

- More varied nightlife

2. What are the property hot spots in Chiang Mai city, and why are these areas so popular?

There's basically 'in town' and then 'out of town'. Out of town in any direction is all pretty similar, it depends on personal preference. In Town the absolute hot spot is the general University area, especially Nimmanhaemin Road. Hot spots == high price.

3. What type of property is in trend in these areas and what kind of buyers are they attracting?

In town you see more up-market yet somewhat smaller scale and nicely built condominiums going up. Out of town space isn't an issue so you're more likely to find houses (either inside a gated development or not), and available land to build your own.

4. What is the price range difference of property / land in the popular areas in Chiang Mai city with more country locations outside the city.

Buy or rent? Condo's in town are more expensive than houses out of town. In town for a nice condo with a couple rooms (anything more than just a studio) will set you back 4-5 million baht or more. Houses out of town start around 2 million (2 floor, 3 bedroom, small garden) and go up from there.

5. How do foreigners and Thais differ in terms of what they want from a property in Chiang Mai?

Thais like to be close to main road, and generally have road access and are willing to pay extra for it. Westerners tend to like it a bit quieter and don't care as much is they're way down a soi. Many Westerners don't want to buy or lease a house when someone else (wife, etc) owns it so they end up going for a condo unit because they get to own it in their own name.

6. What problems are developers facing at the moment?

Economic crisis and not having a lot of money available, also finance harder to get for potential buyers. On the other hand, construction materials have come down in price a bit.

7. What advice do you have for buyers in Chiang Mai?

Live & rent for a long time before deciding what your preference is, both in location and in terms of the most suitable type of house/condo. Typically this changes over time too; a lot of people want to be in town because they don't initially drive a car. Then later they might settle a bit out of town where it's quieter and cheaper.

8. What are the well respected developments in Chiang Mai?

Koolpunt Ville, Land and House, Ban Nai Fun.. But take it as a case by case basis, no guarantees.

9. What is the recent Capital Appreciation of property?

There isn't any. The only appreciation is on the land. The building depreciates just like a car does. (Perhaps a bit slower) If you maintain it well then the only 'appreciation' is due to price of construction materials and labour going up, meaning that building a similar house is relatively more expensive. For Condominiums it's a complete casino: A handful of condominium buildings are maintained well and are in a good location so the value of these goes up, or at least it doesn't go down. For many, MANY others through, they go down the drain badly. At least with "your own" house, you control maintenance yourself.

10. If you are a Chiang Mai resident, how would you describe lifestyle?

Family man.

Thank you Winnie! This is exactly the sort of feedback I was looking for. Please private message me with your name so that I can quote you. Once again, a million thanks.

[rethaired]

The biggest drawback in buying a house (apart from the fact that one has to find a bogus scheme to ensure it is not a bad investment) is that there is no zoning in CM, which brings in the added worry of having a big hotel or apartment building being build next to you. Of course, this is not so much of an issue in moobans, but is the security at the gate really a bonus or a liability AND is the structure of moobans actually one that enable friendship and networking. I find apartment and condo better in some instances as you do actually cross path with these dwellers in the elevator, which allows you to create connections, some more meaningful than others.

The second most aggravating investment drawback for anything, apart from air pollution, is the noise pollution, namely dog barking and religious chants and ringing of all kind disturbing the peace and quiet.

Yes, I know I should learn to tune them out or close my window!

I hear that air pollution is being addressed. When is dog pollution going to? As far as the other kind, well, of course, I should be more tolerant. But, why can't they?

Buyer beware!

[Chunkton]

2. What are the property hot spots in Chiang Mai city, and why are these areas so popular?

There's basically 'in town' and then 'out of town'. Out of town in any direction is all pretty similar, it depends on personal preference. In Town the absolute hot spot is the general University area, especially Nimmanhaemin Road. Hot spots == high price.

Are we taking here commercial hot spots or residential? As TV has already identified Nimmenhemein Rd as the hot gay spot residentially it is somewhat stereotyped, and yes commercially it is perceived as very good for restaurants catering to the Thai university market, although interestingly many foreign start-ups have died, not all of course.

Out of town means a compressed housing complex. Is there no market for foreigners for city housing? Or if in town they prefer condos?