"Orasirin", a leading real estate developer in prime locations in Chiang Mai, indicates that the overall real estate market in Northern Thailand continues to expand. The recovering economy is boosting consumer confidence, while the tourism sector supports job creation and the return of foreign purchasing power, driving up demand for housing. The company is set to launch 7 projects, both horizontal and vertical, valued at approximately 4.6 billion baht within 2023, focusing on expanding the market in quality locations and developing housing that meets the purchasing power and needs of all customer segments.

Mr. Pridikorn Buranupakorn, CEO of Orasirin Holding Co., Ltd., a leader in the development of horizontal and vertical real estate projects in Chiang Mai, revealed that the overall real estate market in Chiang Mai and Northern Thailand is showing positive growth. There has been a continuous recovery from previous periods due to various factors, particularly economic growth that impacts consumer confidence, alongside the revival of tourism, which significantly affects the economy in the northern region. The circulating money in the economy leads to job creation and confidence in the economic situation. Additionally, the return of foreign purchasing power has resulted in a noticeable improvement in the condominium market, which was previously affected by the COVID-19 pandemic.

Moreover, the demand for housing from customers related to the tourism sector is on the rise, including local residents and those from outside the area seeking accommodation in Chiang Mai. Local consumers are looking for single-family homes or condominiums priced below 3 million baht due to their purchasing power and borrowing capacity, as well as measures to reduce various fees.

For those who are not local residents, such as people from other provinces, investors, and foreigners, there is a preference for houses or condominiums priced above 3 million baht, as they consider the project's location and desire larger living spaces. Currently, more than half of the foreigners purchasing projects in Chiang Mai are Chinese. With China fully reopening its borders, this is seen as a positive factor and an opportunity for the company. However, the company has also noticed an increasing trend of buyers from other countries, such as Myanmar, Japan, Korea, and European nations.

Mr. Pridikorn added that as a real estate developer, he sees several risk factors that real estate operators must prepare for in 2023, including the likelihood of rising interest rates, increasing project development costs, and a decrease in consumer spending power, along with the reimplementation of LTV regulations since the beginning of the year. These factors have a significant impact compared to positive factors like the reopening of the country that stimulates tourism. Therefore, operators must prioritize the purchasing power of each area, avoiding overdevelopment beyond what consumers can afford. Reducing project sizes, phasing developments, and limiting quantities to manage risks in line with rising land costs, construction expenses, and interest rates are crucial this year.

In 2023, the company plans to launch over 7 projects valued at approximately 4.6 billion baht to meet the increasing demand. This includes 4 horizontal projects worth over 2.8 billion baht and 3 vertical projects worth over 1.8 billion baht. The strategy focuses on developing housing according to the purchasing power of customer groups, such as developing twin houses instead of single-family homes, emphasizing design that enhances privacy for customers, and developing condominiums at price points that consumers can afford by optimizing room functions. Additionally, projects will be developed in locations with market gaps and good purchasing power, addressing the needs of all customer segments in the Chiang Mai market and helping to expand revenue generation.