Supalai Launches 2.55B Baht Condo Project in Chiang Mai

Supalai evaluates that Chiang Mai's property market still holds long-term potential even as residential transactions have slowed amid economic headwinds and stricter credit. The condo sector has undergone a deep correction until excess supply has been absorbed, while buying and renting demand continues unabated. The firm is re-entering the high-rise condo arena after 12 years with the debut of "Supalai Tham Chiang Mai," a 2.55 billion baht project, confident that sales by year-end will touch 1 billion baht.

Supalai Managing Director Traitecha Thammasitthep said Chiang Mai remains a strategically important province for the company, which already has 15 projects there with eight currently active, reflecting confidence in its role as the economic and residential hub of the North. Chiang Mai's gross provincial product stands at roughly 300 billion baht, placing it among Thailand's largest provincial economies, with a population of 1.78 million and a workforce of 1.05 million. Crucially, its economy is not solely tourism-dependent but spans agriculture, industry, trade and services, making it relatively "bullet proof" against sector-specific volatility.

Residential sales have slowed but demand has not vanished. Annual transactions once peaked around 4,500 units in 2019 before falling to about 2,000 units today, mirroring the nationwide trend amid tighter credit and weaker purchasing power. However, the condo segment tells a more interesting story: new unit launches have dropped sharply while purchase demand persists, resulting in condo sales exceeding new supply in seven of the past eight years. This contrasts with the 2014-2015 period when roughly 35 condo projects launched in a single year, up from just one or two annually before. After a severe correction, only about three high-rise condo projects remain on the market, with 75-85% of their units already sold, indicating past oversupply has largely been absorbed.

Beyond sales, the rental market remains a key driver, fueled by students, business professionals, expatriates, and people from Bangkok and other provinces using Chiang Mai as a second home. This creates diverse demand for owner-occupation, second homes, and buy-to-let investment. Supalai notes its existing Chiang Mai projects attract significant foreign tenant interest, particularly in the Rim area.