Condo Appreciation Thoughts

[LawrenceChee]

Anyone owns and invests in condos in Chiang Mai and has experience in the data of the last 5 years on price appreciation rates / percentages

Been looking at land & house projects in general an the new north 8 condo looks promising for a price gain in the near future with the hong kong or Singapore investors

Sorry don't need the surly advice of the odd owner

[elektrified]

Most people I know who bought condos over the last 5 years have told me that they have depreciated in value; not appreciated.

[eyecatcher]

Most people I know who bought condos over the last 5 years have told me that they have depreciated in value; not appreciated.

and probably a lot to do with an abundant over supply presently.

[kaptainrob]

What's the asking price on North 8? Great location although a westerly aspect to best views may be a bit hot.

[hellodolly]

Most people I know who bought condos over the last 5 years have told me that they have depreciated in value; not appreciated.

and probably a lot to do with an abundant over supply presently.

And the amount being built. The only way I would buya condo now would be with the intention of living in it.

You might want to look and see what is available on the used market. That way you can also see how the building is kept up. You never know if they are going to keep up the building conditions and outside property.

[elektrified]

Most people I know who bought condos over the last 5 years have told me that they have depreciated in value; not appreciated.

and probably a lot to do with an abundant over supply presently.

Correct. There is more supply than demand.

[LawrenceChee]

Starting at 2.2 million for the smallest studio units at 38sqm

4.4 for the 2 bedroom 73sqm ones and 6 for those with direct views at the front of Suthep and pool

The layout is good and the furnishings coming with it seems to set up properly

The land and house reputation is whats pushing me in that direction

Having seen many of the projects in Bangkok by them they have a food team looking after the estate most of the siwalee properties I drove through in Chiang Mai had a well kept feel about if

[kaptainrob]

4.4 sounds ok if south facing and some water view. L & H do have an excellent rep although I would not buy as an investment.

~ 3 to 4 mil buys 2 new single BR apartments in the city with better appreciation and rental prospects 2 bedders are usually all snapped up of-th-plan.

[eyecatcher]

Most people I know who bought condos over the last 5 years have told me that they have depreciated in value; not appreciated.

and probably a lot to do with an abundant over supply presently.

And the amount being built.

another little gem there.......love it

[NancyL]

The people I know who make money buying condos as investors are those who buy old, run-down units in fairly-well maintained older buildings with good locations. They then refurbish the unit and rent them out. I don't know of anyone who buys a new condo with a view to it appreciating in value.

[hellodolly]

Starting at 2.2 million for the smallest studio units at 38sqm

4.4 for the 2 bedroom 73sqm ones and 6 for those with direct views at the front of Suthep and pool

The layout is good and the furnishings coming with it seems to set up properly

The land and house reputation is whats pushing me in that direction

Having seen many of the projects in Bangkok by them they have a food team looking after the estate most of the siwalee properties I drove through in Chiang Mai had a well kept feel about if

The price may be rite or may not be. I can not really say.

But 73 square meters seems kind of small for two bedrooms.

Also sounds like a direct view of Suthep would be westerly facing. Can be very hot in the afternoons. Or do they have that special glass that insulates?

[sitta]

Area near Payap University is any good to buy, just to live in?

[LawrenceChee]

Layout is good for the 2 bedroom and I am targeting at the resale for the hong king and Chinese coming into Chiang Mai so the size is a niche in CM as there are not many at this price facing the mountains from a reputable builder

( be open to other opinions as some of you have been around longer )

I understand these 2 market segments as I work with them in their respective markets for my work and the serenity lake area appeals to them.

As for the Payap uni area near big c I see it for myself as an area with great potential as the condos there such as the jigsaw, my hip projects , any hillside renovated units have great rental potential and lifestyle options as the area has good vibes and build up potential with the 2 malls for resale or just living close to the amenities for those that are tired of the airport or Nimman areas

[CMweb]

If you plan to live in the place yourself, you should value the price with your feeling about the place and location, if you like it much, sometimes you will pay more then you should pay for the space.

If you invest to get return thru rentals, you should see more into the location, rental value, and price, there are some big different from selling company to company.

http://www.buyrentchiangmai.com/listing/new-apartments-for-sale-97.html

http://www.buyrentchiangmai.com/listing/apartment-for-sale-75.html

http://www.buyrentchiangmai.com/listing/new-apartments-for-sale.html

[chiang mai]

Prices at Floral over the past eight years are broadly flat, larger units (150 sq metres) down a little bit, smaller units (100 sq metres) up a little bit, However none of that prevents the odd owner from trying it on now and again but eventually reality hits and the asking price normalises.

Asking prices at Rimping seem to have increased over the same period although I don't know if they are actually being achieved, I doubt it very much, ditto Riverside. Smart money seems to be in renovation and renting.

Edited September 7, 2012 by chiang mai

[LawrenceChee]

Heya Vibe

I did enjoy my stay at mountain front when I was there for 2 months

It's a quiet apartment abd neighborhood and the 2 ladies at the reception are great help with everything

The free shuttle to kad soon keuy was great as well :-)

[Greenside]

Heya Vibe

I did enjoy my stay at mountain front when I was there for 2 months

It's a quiet apartment abd neighborhood and the 2 ladies at the reception are great help with everything

The free shuttle to kad soon keuy was great as well :-)

Free shuttles are likely to go the way of security. A couple of years after they've placed all the units it'll be down to calling a cab.

[HappyInCM]

Prices at Floral over the past eight years are broadly flat, larger units (150 sq metres) down a little bit, smaller units (100 sq metres) up a little bit, However none of that prevents the odd owner from trying it on now and again but eventually reality hits and the asking price normalises.

Asking prices at Rimping seem to have increased over the same period although I don't know if they are actually being achieved, I doubt it very much, ditto Riverside. Smart money seems to be in renovation and renting.

Given that Rimping looks like almost every other 10+ year old condo and Floral still looks new, they're gonna have a hard time selling those at a premium.

Maybe the maintenance fees at floral put some people off from buying. I assume they're more because they do keep that building looking new.

[amexpat]

Well, in regards to your original question about appreciation, at Mountain Front, we paid 3.2M for a 1 bedroom, 86.60 SQM unit. So we paid 36,951 per sqm. 4.4M for 73sqm and you are paying 60,273 per sqm. At that price, our unit would have cost 5.2M Baht. If that is not appreciation I do not know what is. We bought our unit about 2 years ago.

One bedroom compared to a two bedroom in a different project, management?, location?, view? floor level?, same city, though.

[moe666]

Where ever you want to buy, rent there for a few months to be sure they use your fees for the upkeep of the facitity. A friend bought several units to rent out but the fees paid were not used for what they were intended, there has been problems of immigration called in to check the visas of the complainers to management about the misuse of fees.

[LawrenceChee]

Vibe

That is such a pity as all 3 are the best employees I have seen in a building complex for a while

Khun Ning dropped me an email and told me she is nearly due but won't be back so I am not staying there this time as I am at the riverbed this time

The views are stunning and it's quiet but the people made the stay such a good one

[sitta]

" As for the Payap uni area near big c I see it for myself as an area with great potential as the condos there such as the jigsaw, my hip projects , any hillside renovated units have great rental potential and lifestyle options as the area has good vibes and build up potential with the 2 malls for resale or just living close to the amenities for those that are tired of the airport or Nimman areas"

So near Payap uni area will be a good buy to live in? Anyone else live close by?

[LawrenceChee]

Sitta drive there and have a look ...the next 2 years with the projects going there may be a lot of construction noise and dust but it is not at all areas of that part

Personally I like the vibe of being behind Big C great convenience with the amenities in there and the restaurants and stuff catering to the students from Payap university means u get a good vibe of the place with the mix of youngsters Thai and foreigners ...

I like it here and intend to rent here now with the intention to buy

There is another project launching soon call my hip 2 project

[amexpat]

.... When buying condos, one needs to look at the price per sqm to get an understanding of the value of them. And 36K compared to 60K per sqm is a BIG difference. Has my condo gone up in value, or is the new condo being built with ultra high end materials and is marketed as "luxury"? Don't know, maybe they meet somewhere in the middle?

How many baht per kilo should you pay for a car or truck?

[elektrified]

I would be very careful...

There was a thread recently on a possible building bubble beginning to form in C.M. Members were discussing all the various malls and industrial parks, housing developments, etc. That was about 3-4 months ago? Since then I have noticed a number of projects that have halted construction or been abandoned. It was mentioned yesterday that the site of the old Think Park has stalled. The large development - Lanna Market I think it was called directly across from Meechok Plaza now has a sign on it saying project halted until further notice. There was an area near the original Big C in what I would call an area of run down villages that had something like 5 different condo projects under construction. I happened to be in that area again yesterday and noticed at least 2 of them are now abandoned construction sites; one already has a bank sign on it. There is a new moobaan behind me that had about 8-10 new houses under construction. 2 homes were completed and the other 8 are only partial concrete structures. The other day I saw what was apparently the lender conducting a repossession of all the bulldozers, cranes, and other heavy construction equipment. There had to have been 50 guys loading all the equipment onto trucks. Police were on hand as well. The entire site has been vacated including the worker's camp.

I know people who have been trying to sell condos in C.M. for years now with no serious offers.

[LawrenceChee]

Agree Eletrikfied

In real estate investment ...not everything is gold and full proof

Stick to good locations, strong developers of good quality houses and if u find a niche investor market ...it's mitigated risk like all investments

Agree everyone should go in with eyes wide open and make good choice

[cheeryble]

I would be very careful...

I know people who have been trying to sell condos in C.M. for years now with no serious offers.

They are undoubtedly selling at the wrong price....there's a lot of dross out there and you must expect dross prices.

In my experience decent quality condos sell and rent well.

As for a boom who knows. If you had said don't buy in Shanghai after two years when that started growing you would have missed the boom of the century.

BTW Lawrence like Vibe I have no idea where your prices are coming from....and isn't Mountainfront the one with the blue windows :-o which they chose to situate right on the highway?

Edited September 8, 2012 by cheeryble

[chiang mai]

.... When buying condos, one needs to look at the price per sqm to get an understanding of the value of them. And 36K compared to 60K per sqm is a BIG difference. Has my condo gone up in value, or is the new condo being built with ultra high end materials and is marketed as "luxury"? Don't know, maybe they meet somewhere in the middle?

How many baht per kilo should you pay for a car or truck?

The analogy is a fair one and the comparison between prices at Rimping and Floral proves that point I think. As an earlier poster pointed out, trying to sell at high prices on the basis of square footage alone does not quite cut it.

[LawrenceChee]

Heya mates

The price of the condos came at the showroom .....drive down along Hang Dong and when I pass Big C at that intersection turn right and you can u turn into serenity lake ...the fancy entrance with the 8 giant white pillars

As for mountain front ...check out the website I think u gig the wrong condo

Its along canal road where u can see a B2 black hotel and some seafood restaurants ...drive down that road till the end and you will see the units alternatively go on chiangmai properties website and thy have a few units on rent ...

It's a nice estate and certainly nothing on blue :-)

[cheeryble]

Lawrence I can't find your north 8 or my hip condo on google so I can't check your proces, which seem higher than central Chiangmai.

As for condos in general and potential bubbles, the odd thing is that little me who doesn't know particularly many people has friends in two of these new buildings and two friends who have both not only talked about buying into these latest blocks, but have made down payment. One is Scene on the canal road no foundations yet and the other Oneplus behind Jet Yod. They are all for personal use not investment.

I still say the better, established, blocks are the way to go. Still may be possible to find a deal for renovation there too.....because it seems to me if you're the least bit fussy these new condos need upgrading before you start.....this was confirmed by my friend buying into Oneplus as soon as I mentioned the doors and frames he said yes they're as cheap as chips and he's changing other stuff in there kitchen I think for a start.