Sunday, 25 August 2013

House Prices in Chiang Mai

The price of a Chiang Mai house has many influencing factors the same as the property market anywhere in the world. The Chiang Mai house market is currently enjoying a growth compared to many parts of the world.  This steady growth is helped by the close by Chinese market and the fact that Thailand has not even noticed most of the world is in or has been through a recession.

There are a few differences in the Chiang Mai property market. The main difference seems to be seen the most in the second hand housing market. Prices here are set generally set by the owner. The owner decides how much he would like for the property and that is it.. Then despite the feelings towards the property value of a local agent, the listing price will be that set by the owner. This obviously results in highly inflated prices in some properties and these generally do not sell, but, every now and then one does.

This second hand pricing system benefits the “New build” These new housing projects are popping up all over the outskirts of Chiang Mai. These newly built properties are offered at extremely reasonable rates, often making them a much better buy than a second hand house. These properties often have the added attraction of coming with one year warranties.  

Another reason these housing communities can be constructed so cheaply is that they are built on mass. The labor force is cheap and the materials can be bought cheaper in bulk.  The land in Chiang Mai is still plentiful and offered at amazing rates if bought in such large areas as the companies need to build their projects and be successful.

Until the current owners set there sale prices at a more reasonable rate the second hand market will continue to be slow, while the new build continue sell at a steady rate.

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