Downtown Bangkok apartments face threat from new condos
Apartment rentals in Bangkoks prime expatriate area decreased slightly in the fourth quarter of 2010 due to a surge in condominium developments, according to CBREs latest market research.
It suggests apartment developers have recognised the competition from condominiums and tenants preferences for amenities such as Wi-Fi access, fitness rooms and modern fitted kitchens and bathrooms. In Q4 2010, the total apartment supply in downtown Bangkok was up 11,565 units, an increase of 2.6 per cent year-on-year, with 92 completed projects within the quarter. The Sukhumvit area achieved an 86.3 per cent occupancy rate during Q4, while the second highest level achieved was in the Central Lumphini district.
CBRE expect a reduced supply of apartments, while competition from the condo market is set to increase, with a further 17,300 currently under construction. Competition is expected to be greater for smaller studios and one bedroom units.