Despite the political turmoil, Singaporean investors continue to be interested in property development in Chiang Mai, driven by the city’s airport expansion, a new international convention centre and the upcoming Asean integration.
Matthew Lin, managing director of Chiang Mai-based property developer Summit Global Developments, said in a Bangkok Post article that his company and a group of Singaporean investors will launch three new projects worth a combined THB 1.2 billion in the northern city this month. The group is “not worried much about who will take [political] power” as new infrastructure, which was on-and-off many years ago, has been completed.
In addition, Chiang Mai caters to expat lifestyles with a number of shopping malls, including Central Festival, Promenada and the recently opened Maya. The high-speed train is a must-do project for the new government, said Mr. Lin.
The new projects, all joint ventures between Singaporean and Thai partners, will include Floral Parc Residences, with three blocks of seven-storey buildings worth THB 300 million each, near the Royal Flora Ratchaphruek; Rooms@CMU, a condominium near Chiang Mai University with 148 units worth THB 300 million; and The Consulate Residences, a THB 600 million baht villa project in Mae Rim.
The target return on investment is 30 percent in two years, estimates Mr. Lin. He adds, “Many Singaporeans are cautions…However, [they] been actively buying property in Chiang Mai during the political unrest as prices are below those in Singapore and the weak baht presents an ideal opportunity.”
The company is also in talks with a SET-listed developer to jointly develop a medical complex east of Chiang Mai. With a THB 2 billion investment budget, the project will be comprised of a medical centre, retail space, hotel and condominium units. The latter is targeted for investors who plan to lease serviced apartments to patients and their relatives.
