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EXPAT UNITS STAY POPULAR

EXPAT UNITS STAY POPULAR

Published: 3 Apr 2014 at 00.06 by Bangkok Post Property

Demand for serviced apartments in 2013 remained unchanged in most areas of Bangkok despite the political turmoil, according to the real estate adviser CBRE Thailand.

The average occupancy rate for 2013 stood at 81%, down marginally from 82% in 2012, owing to lower occupancy in some serviced apartments near protest areas. 

Serviced apartments in Bangkok typically target two types of customers: long-term tenants who are single expatriates working in Thailand, and short-term tenants who are tourists or business travelers.

Most serviced apartments are one-bedroom or studio units

The number of expatriates with work permits based in Bangkok rose by 12% in 2013. Japanese nationals working in Bangkok made up the highest percentage of the long-term rental market for serviced apartments.

Rental rated for serviced apartments held firm because of competition from the many one-bedroom condo units available for rent in the long-term market.

As of the last three months of 2013, the average rent of Grade A serviced apartments in Bangkok was just above 1,000 baht per square meter per month. The Sukhumvit area had the highest average rent of nearly 1,200 baht per square meter per month.

According to CBRE research, very few serviced apartments are now being built; but more than 5,000 hotel rooms are under construction in Bangkok, driving competition in the short-term market.

Over 20,000 condo units are under way in downtown Bangkok, of which 70% will be one-bedroom and studio units. Many have been bought by investors looking to rent out a unit. This trend should stimulate competition in the long-term rental market for studio and one-bedroom units.

Photo credit should go to: CBRE

Source: http://www.bangkokpost.com/property/news/403144/expat-units-stay-popular