Thai highland property demand hits peaks
Thai highland property demand hits peaks
Where tourists go, property buyers follow
Tourism seems to be the yeast that makes real estate sentiment rise in the highlands of Thailand.
The upland provinces of Chiang Mai and Chiang Rai, in addition to the Khao Yai area in Nakhon Ratchasima, saw accumulated home sales equivalent to 79 percent of supply last year, The Nation reported, citing research conducted by Bangkok-based real estate agency Plus Property.
Not coincidentally, the number of foreign tourists in the foregoing destinations rose 13 percent year-on-year on average in the first nine months of 2016, according to data from the Tourism Authority of Thailand.
“There is a trend of increased foreign demand for real estate in Chiang Mai, which is a popular city for foreign nationals,” Plus Property Co managing director Anukul Ratpitaksanti said. “Foreign media outlets, such as The Huffington Post in the United States, have ranked Chiang Mai as one of the best real-estate investment locations in Southeast Asia.
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Bangkok buyers looking for vacation homes also fueled demand for Chiang Mai real estate, even those located in outlying areas. Plus Property reported sales amounting to as much as 82 percent of the total supply of 27,709 units.
Overall, demand for Chiang Mai homes rose 7 percent last year, with buyers showing a 79 percent response rate to prime detached homes priced between THB25 million and THB50 million (USD708,000-1.4 million). Most of these are located outside Chiang Mai city.
“There is an emphasis on investments in city areas, which feature a full range of conveniences, as well as areas close to nature, such as the Mae Rim zone,” Anukul said.
Non-residents placed a strong demand on Khao Yai homes in the price range of THB60,000 and THB80,000 per square metre, with sales representing 72 percent of a supply of 5,078 units. In Chiang Rai, sales reached 76 percent of supply, which totaled 4,161 units, but most most developments in the province “focused on local customers, resulting in a static market,” Anukul noted.
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Source: Property Report