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Condo and housing market surges in Chiang Mai
Land prices in central Chiang Mai have seen a
dramatic increase this year and are set to rise further as the city
continues to attract more tourists and new residents.
Arkom
Chiang Mai has seen a phenomenal year of rapid growth in size that
seems to be running out of control. Large amounts of money are being moved
into the market continuously and the number of tourists and residents has
jumped. Traffic has become snarled and not much different from Bangkok.
Chiang Mai people will have to adapt themselves as next year the numbers of
tourists and people moving to Chiang Mai is expected to continue to climb.
People will need to learn to manage travel times and cope with higher costs
of living.
As a Chiang Mai person, I think we may see a crisis situation if the local
government and people are not ready for this growth, especially in handling
traffic, safety and the image of the city.
An artist’s rendering shows the Resort
Condominium by Quality Condominium Co., one of many new projects launched on
the back of Chiang Mai’s burgeoning real estate sector.
According to the Bangkok’s Business Newspaper the number of condos and
townhouses in Chiang Mai grew substantially in 2012.
Paisarn Phucharoen, Vice President of the Real Estate Association of
Lamphun, Chiang Mai and Vice Chairman of the Board of Land and Houses Public
Company Limited said that in 2012 Chiang Mai saw more than 50% growth in
housing with total sales of 1,150 units at a cost of 3,399 million baht; a
pace that has never been seen before. He credited this in part to the floods
in Bangkok that saw many people purchase a second home in Chiang Mai as well
as investment buyers. This year there has been a total construction area of
300,000sqm and this will double to 600,000sqm next year.
The booming condo market has seen big companies like Sansiri, Quality House,
Land and Houses, plus the local developers investing in Chiang Mai. The
condo market continues to settle inside the city but the price is increasing
from 30,000 baht per sqm to 50- 60,000 sqm. Along the Super Highway the
minimum building is 4,000sqm. In gated communities (Moo Baan), the land
price is increasing from 1 to 2 million baht per rai (1600sqm).
Vasant Chawla, Managing Director of Quality Condominium Co. said the period
2011–2012 was a golden year for real estate business in the area with a lot
of investment, trading and selling of land. He said it was becoming more
difficult to find good buildable land because of the influx of capital
invested by the large companies like Land and Houses, Quality Houses,
Supalai, Sansiri and LPN.
Currently the land prices in Chiang Mai have increased more than 100% in
some locations such as the Nimmanhaemin Road and Super Highway, Chiang Mai -
Lampang Road. For the past 4-5 years the price has been steady at around
20,000 baht per sq wah but this year the price is already 50,000-70,000 and
up to 100,000 baht per sq wah. This has forced expansion along the Ring Road
and development moving to the third ring road with more showrooms and big
commercial buildings. Even here prices have risen from 5,000 baht per sq wah
a few years ago to 20,000-30,000 baht per sq wah today.
Currently, there are more than 10,000 condominium units in the city with an
average price of 1.5 million baht per unit. The total value is more than
15,000 million baht. This does not include projects that are still waiting
for government approval.
According to the Government Housing Bank (GHB), condo sales totaled 3,500
units or 8,000 million baht in 2011 with 3,000 of those units in the city
distributed among 12 condo projects. 2012 saw 33 new condo projects
launched.
An official from the Chiang Mai Land Office said that the floods in Bangkok
inspired people to move to Chiang Mai, purchasing land, houses and condos.
Within five years, the price of land in the city is expected to be much
higher and there will be less land for gated communities. It is expected
that more Chiang Mai people will live in condos and the average price of a
unit will be in the region of 1.5 million baht.
Housing projects will expand to areas outside the city, like Mae Rim, San
Sai, Doi Saket, Sankampaeng and Saraphi. According to the statistics of Moo
Baan projects from 2010-2012, there are 392 Moo Baan and 60 condo projects.
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Sansiri announces new 1.5 billion baht
‘dcondo Sign’ condominium
Developer unveils plans for latest project under the ‘Today, Tomorrow & Forever’ campaign
Sansiri’s
latest project
dcondo Sign is
located near the
soon to be
opened Central
Festival Chiang
Mai and all
units come fully
furnished.
Sansiri, one of
Thailand’s
leading property
developers,
recently
announced the
launch of its
latest
condominium
project in
Chiang Mai,
‘dcondo Sign
Chiang Mai’
aimed at
appealing to
home seekers
both in Chiang
Mai and nearby
provinces.
The dcondo Sign
project is
centrally
located adjacent
to a large
shopping
complex, and is
linked by the
superhighway to
all main roads,
making it easy
to get in and
out of town. The
project offers a
complete range
of first-rate
facilities,
dependable
24-hour
security, and
other features.
Prices start at
1.45 Million
Baht.
Suriya
Wannabuit,
Executive Vice
President –
Project
Management and
Marketing
Department,
Sansiri Public
Co., Ltd.,
stated that,
“Sansiri
continues to
develop quality
residential
projects to meet
strong demands
in Chiang Mai,
with the
‘dcondo’ brand
being the
highlight.
dcondo projects
have received
remarkable
response from
our customers.
So we introduce
the ‘dcondo Sign
Chiang Mai’
project into the
market this year
to respond to
increasing
demand for urban
residential
properties such
as downtown
condominiums.
Such demand is a
result of the
changing
lifestyle of
Chiang Mai
people. When
buying a
property, buyers
now consider not
only price and
quality of the
project, but
also the
location and how
it complements
their
lifestyle.”
Mr. Suriya
continued,
“Chiang Mai has
developed into a
hub in all
aspects of the
Northern region.
It is a hub for
land and air
transportation,
economy,
education and
tourism. Chiang
Mai is envisaged
to become a city
of choice to
live in and one
of the world’s
top travel
destinations
within the next
four years. The
city is a
regional gateway
to international
trade and
investment. Such
vision has led
to rapid growth
of the city over
the past years.
Also, the city
has welcomed
both domestic
and overseas
investors who
have come to
invest in
various
businesses as
they have
foreseen the
potential of the
city together
with various
developments
that are soon to
take place.”
He noted that in
terms of design,
the project is a
harmonious blend
between
time-treasured
Lanna
architecture and
sophisticated
touches of
modernity. This
is evident in
the fact that
the same types
of bricks as
those used in
the construction
of the iconic
city walls of
Chiang Mai have
been used to
adorn this
otherwise modern
condominium.
Located on an
11-rai land plot
on Chiang
Mai-Lampang
Superhighway,
Fa-Ham
Sub-district,
this community
of four 8-storey
residential
buildings is
next to the new
Central Festival
Chiang Mai.
There are 813
units consisting
of two types –
30-sq.m. studios
and 60-sq.m.
two-bedroom
units. The units
come fully
furnished, and
the project is
equipped with a
range of
first-rate
facilities
including a
large common
garden, a
swimming pool, a
fitness room,
ample parking
spaces, and, a
24-hour security
service. The
project is also
close to
virtually
everything
demanded by a
cosmopolitan
lifestyle
including many
upscale shopping
venues and a
nearby leading
hospital.
“Sansiri has
created a number
of successful
projects in
Chiang Mai to
accommodate
ever-growing
demand for
quality
residential
properties. All
of our previous
projects there
have been
greeted with
very warm
welcome from
potential
buyers, and we
expect that
dcondo Sign will
soon win hearts
of customers
similarly,”
added Mr.
Suriya.
dcondo Sign has
been opened for
inspection from
15th July
onwards at its
on-site Sale
Gallery in
Chiang Mai. For
more
information,
please Tel. 1685
or visit
www.sansiri.com.
A computer
generated
graphic shows
the completed
dcondo Sign
Chiang Mai
project.
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