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Chiang Mai Condo Woes

By on Apr 26, 2016 in Property News, Residential

Condo and housing supply in Chiang Mai are forecast to remain weak for 2016 despite the new transport network development projects. This is partly due to poor demand from local buyers in the Chiang Mai condo segment.

Samma Kitsin, director-general of the Real Estate Information Center (REIC), said the government’s new transport networks in Chiang Mai will have a minimal impact on the property market as the projects are unlikely to be completed in the near-distant future.

There are many transport plans in place – the Airports of Thailand Plc aims to construct a second Chiang Mai international airport with a maximum capacity of 17 million passengers a year and the Highway Department is preparing to build a 184-kilometre inter-city motorway between Chiang Mai and Chiang Rai.  A feasability study for highways was completed last year. If it is approved then construction could begin in 2020, with the motorway projected to be ready for use in 2025.

To further integrate with neighbouring countries, the government aims to develop a so-called western gate that will connect Chiang Mai and Mae Hong Song with Myanmar and India. A tunnel is also being constructed under the Mae Jo intersection and the Fa Ham Bridge is planned to expanded.

“Those transport networks will not be finished in the near-distant future,” says Mr Samma. “The key driver boosting the economy of Chiang Mai remains the tourism sector. Like other provinces, Chiang Mai has faced sluggish economic conditions, with agricultural prices declining since 2014.”

In 2014 there were 53 active condo projects with a total of 7,659 units worth a combined 23.57 billion baht, down from 59 projects with 8,400 units. Most of the projects were in the Muang district. The next popular was San Sai and Hang Dong.

Due to limited demand from local buyers, SET listed developer Charn Issara Development Plc has teamed up with the Chinese Contractor Tianyuan Construction Group to develop a condo project worth 1.2 billion baht in Chiang Mai. Somnuek Tanthathoedtham, deputy managing director of SET listed developer N.C. Housing Plc says the company is also looking to form a joint venture with foreign investors to develop a condo project in Chiang Mai.

Source: Bangkok Post 18th April 2016
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