The Chiang Mai condo market supply of new condominium units in hit a 17-year high of 18,640 in May, according to Colliers International Thailand.
Statistics show that more than 1,640 units were completed and registered at the Lands Department this year up to May, company's senior research manager said yesterday.
Chiang Mai, which is the main business and educational centre for the North Thailand, was a popular location for condo development in the 1980s and '90s, but that growth ground to a halt as a result of the 1997 financial crisis. Recently developers have started to build there again, according to the latest "Chiang Mai Condominium Market Report".
After the economic crisis in 1997 until 2012, only 3,540 units were added to the market, partly because Thais prefer living on landed developments.
Many projects were launched from 2011 until May, particularly last year.
"There were more than 6,000 units launched from 2011 to 2012 and approximately 1,840 units were launched in the first five months of 2013. Approximately 4,260 units or 54 per cent of the total units launched from 2011 to May 2013 are located in the outer city area, while nearly 3,600 units are located in the city area," said a company executive.
Some projects introduced last year by listed developers sold out quickly. The average take-up rates in both areas are similar at 72 per cent, although 1,960 units, or 48 per cent of the total market, were started in 2011. This is 5 per cent lower than in the previous year, because of many units launched in the second half of last year and the first five months of this year.
The average price this year has been 35-75 per cent higher than last year, depending on location, developers and project concept. The average price of launches to May is Bt62,790 per square metre, up 11 per cent over the average price of launches last year.
The average selling price in the city area is 14 per cent higher than in the outer city area and most of the projects launched this year, which have an average price higher than Bt65,000 per square metre, are located in the city area.
Most high-priced projects are on Nim Man He Min, Chang Khlan and Charoen Prathet roads, not far from the old town. The starting prices of some scheduled launches this year are higher than Bt80,000 per square metre, so the average price in the second half and in the future will probably be 5-10 per cent higher, he said.