This year, the real estate market in the northern region of Thailand has overcome the lowest point and is beginning to revive. The northern region of the country includes such provinces as Chiang Rai, Chiang Mai, Nan, Phayau, Phre, Mehendson, Lampang, Lamphun, Utradit. The construction of 4,792 new projects with a total cost of more than 14,490 million baht is expected to begin.
In the second half of 2021, it was found that in Chiang Mai, the market has already begun to adjust for the better. This can be seen by the number of launches of new projects. Sales began to increase from the first half of 2021 and continued to grow in the second half of the year. However, investors are still cautious about investing in the condominium market in the northern region. Meanwhile, the low-rise housing market remains at a decent level, especially in Phitsanulok.
Real Estate Information Center (REIC) found that in the second half of 2021, very few housing projects were released to the market in the northern region: only 1,978 properties (a decrease of -10% compared to the same period last year) and a total cost of 7,439 million baht (-4.6%). As a result, the total number of properties sold in the northern region amounted to 17,998 residential units (-3.1%) with the total cost of 67,227 million baht (-1.3%).
During the pandemic period, Chiang Rai saw the largest decrease in real estate launches - 78.9% (in all types of housing projects compared to the same period last year). In Chiang Mai, the launch rate of low-rise projects decreased by -33.5%, but condominiums increased by 12.8%. In Tak province, there was a slowdown in all types of housing projects, while in Phitsanulok, the number of new residential units commissioned increased by 263.9% compared to the same period last year.
It is assumed that in 2022, approximately 4,792 real estate units with a total value of about 14,490 million baht will be put on the market, while the total number of units will increase by 68.3% from 2021, and the total value will increase by 46.4%, including about 3,849 units of low-rise projects with a total value of about 11,761 million baht and 943 condominium projects the total cost is about 2,729 million baht.