Buying condos and apartments in Chiang Mai
Among foreigners retiring or settling in Chiang Mai, buying condos or apartments in Chiang Mai has become popular since it’s not possible to own land. However property act amendments provide for a building to be up-to 49 per cent foreigner owned.
The increase in foreigner choosing to live in Chiang Mai has resulted in the appearance of many large and modern condo developments in the city. Many of these buildings have been designed with foreign requirements as part of the property specification, with the effect that many are now filled with up to 49 per cent foreign occupants. They are luxurious, appeal to foreigner tastes and professionally managed. Since 2006, more than 10 new buildings with up-to 800 units have come under construction, therefore offering you plenty of choice when buying apartments in Chiang Mai.
The condo and apartment market in Chiang Mai is diminutive when compared with the selection and price of condos in cities like Bangkok, particularly those properties that are aimed at foreigners. The market in Chiang Mai has, however, become characterised by an oversupply of condo units in slightly neglected bank-owned buildings where the original specification was aimed at Thai tastes and thus lacks some of the attributes foreigners look for, such as large balconies, natural light and rooms that you could swing a cat in. With the arrival of so many luxury units recently there is possibly a risk of over supply there too, good news for those buying condos in Chiang Mai to live in, but a caution for investors.
The most suitable buildings in terms of foreign requirements and value retention can be found along the riverfront (these generally sell at premium prices) and around the more affordable vicinity of the university, particularly the fashionable Nimminhemin Road and Huay Kaew Road. This area receives a steady demand from foreigners which has resulted in many of the units being bought up by long-term expat residents who then rent the condo units to other foreigners. Several are also now being erected in Chang Khian near the 700 Year Stadium.
Many have been buying condos in Chiang Mai off plan, deriving better prices if they are willing to wait 18 months. But not all projects are sound, and some have run into trouble. Tennants also become frustrated with poor maintainence and management as has been the case in Twin Peaks. None-the-less, this set of buildings, along with Panna, Kharn Khanok, Convention and Mountain Front are all sound developments. And they are counting on a steady stream of retiring foreigners to keep their market bouyant.
Typically, Chiang Mai apartments in these buildings range from 44 to 100 square meters, with prices ranging from 25,000 baht per square meter out in the suburbs to 60,000 baht for centrally located buildings.
There are many advantages to buying in a building where a foreign investor has bought many of the units for renting purposes. Generally such investors hold enough investment in the building that they can ensure the standards of amenities are well maintained by the owner. In addition to this, buildings with large foreigner investment will normally have tenant associations which can be lacking in largely Thai occupied buildings.
Also, some well informed foreigners have done well buying apartments in older unsuccessful buildings that came under neglected bank ownership after the crash of ’97. They buy them cheap, renovate them and turn a good profit renting them out to foreigners who are unpeterbed about the state of the common areas.
In general there is a good choice of apartments in the Chiang Mai condos, suiting a range of budgets and providing a nice pad for a very reasonable cost. Many owners have these as second properties. The maintainence and security, compared to a house is low, so condos are ideal if you plan to live in Chiang Mai part time.
- Buying and investing in properties in Chiang Mai
- Renting apartments and condos in Chiang Mai
- Buying houses in Chiang Mai
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