Tourism Growth Supports Real Estate Boom in Chiang Rai

Buying property overseas is one of the biggest investments many foreigners make. Before you deep dive into a developing market, it’s important that you do thorough research, checking the market cycle, and how healthy the market is.

Thailand is inevitably one of the most popular countries when foreigners decide to buy property overseas.

Realty Chiang Rai say its research had found that real-estate growth is closely linked to tourism growth in three key areas Chiang Rai, Chiang Mai and Khao Yai.

Chiang Rai in particular is experiencing property sales of up to 82 per cent of available supply as its numerous tourist attractions have contributed to foreign media labeling the city as one of the most attractive for real-estate investment in Asean.

Moreover, Chiang Rai province has plans to develop an airport in Bandu district, while a future planned high-speed railway from China will also drive real-estate prices even higher in the future.

Data from the Tourism Authority of Thailand showed that the number of foreign travelers in these areas increased by an average of 13 per cent between January and September 2018 compared with the same period of the previous year.

A survey found that Chiang Rai experienced sales of 76 per cent of the province’s total supply of 4,161 units, with a market saturation rate of 2.6 units per month per project and most demand coming from local residents purchasing property for personal housing.

There is good response for properties priced at less than Bt3 million per unit with locations in highland and lowland areas of Chiang Rai city. There is also good response in the condominium market for one-bedroom units priced from Bt40,000-Bt60,000 per square metre.

The province’s condominium market has demonstrated a saturation rate of 6.6 units per month per project, while the detached-home and townhouse markets have saturation rates of 1.9 and 8.2 units per month per project respectively.

Meanwhile, real estate in the Khao Yai area showed a supply of 5,078 units, with demand of 72 per cent. Condominiums continue to represent the biggest market, with new supply showing an average response rate of 87 per cent, or 11.7 units per month per project.

Foreign media outlets, such as The Huffington Post in the United States, have ranked Chiang Rai as one of the best real-estate investment locations in Southeast Asia.

New supply is expected to be generated through major developers, including both horizontal and vertical projects, which may account for up to 80 per cent of market share.

“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.

“In the province of Chiang Rai, we expect the real-estate market to be stable, much like in 2016. Despite delays in horizontal and vertical projects during the end of 2017 and 2018, there is still new supply in the market from small local developers. However, most real-estate projects in the province are focused on local customers, resulting in a static market.

 

 

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