Chiang Mai Hotel

Investors have snapped up the limited number of new luxury condos available in Chiang Mai over the past 18 months, but finding tenants is proving more difficult. A combination of over-confidence in the rental market, construction-site proximity and bad location are all reasons given for the lack of demand among tenants. Yet new projects appear to enjoy buoyant sales, reports Andrew Bond.

The emergence of a small but certain luxury condo market is one of the key characteristics of property in this Northern town which has been overhauling its image somewhat in recent years. The arrival of several five-star hotels and the gentrification of areas such as Nimminhemin road and the Night Bazaar area are signs of confidence in a more cosmopolitan city atmosphere. The city has also noted a marked influx in foreigners becoming residents here, and traditionally this sector has supported the existing condo market. Now, buildings such as Twin Peaks, Kharn Kanok and Punna are offering foreign buyers and residents far more choice.

Gone are the days of settling for 40m2 studio units in traditional condo developments. A sense of flair, spaciousness and modern living are hallmarks of a new generation of condo buildings for the burgeoning expatriate crowd settling in Chiang Mai. In addition, more and more wealthy outsiders, from Bangkok, Singapore and as far away as Hong Kong, are buying themselves weekend pads in the city, bringing with them luxury expectations.

For proof of demand you need only step into the sales office of any of these new projects. Twin Peaks sold out last year shortly after the official opening and is reporting brisk interest in their new half-finished Peak Gardens. Siritara, a building on the outside of the city limits with pretensions in the luxury league, has only a few units left. Meanwhile, Baan Kharn Kanok III near the National Museum sold out its entire 49% foreign-owned quota before the foundations were even completed. Source: thailand-property-guide.com