THAILAND - Chiang Mai’s condo conundrum

Asia Property Report - September 27 2007

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.

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