Serviced Apartment Market in First Half of 2013
Serviced apartment is built for groups of foreigners who work in Bangkok. Requirement is abundant in central business district or comfortable transportation such as skytrain, subway. In 2013, requirement start to spreading to suburb that has lower rent, but it is still suburb that has a good transportation such as skytrain as major.
Supply of serviced apartment at first half of 2013 is about 18,220 units. At the end of 2013, it will increase to 18,300 units.
Location that has the most of unit amounts is Sukhumvit that more than other areas up to 220 – 770%.
Second quarter of 2013, median rent rate decreased about 3% compared to first quarter of 2013 but higher than same period of last year that is second quarter of 2013.
Thong lo alley (Sukhumvit 55) is still popular of foreigner, especially Japanese because it is good location, filled of facilities, have median rate rent that increase a bit compared to previous quarter opposed to other locations that rent rate decrease.
Due to price of inner city land that increasing much highly, especially around sukhumvit road and serviced apartment requirement in the next 1 -3 years that is limited including condominiums that have fierce competition for adjust space in the building to serviced apartment and charge the monthly rent, it make foreigners who work in Thailand have more choice of serviced apartment. Although there’s travelling to Thailand continuously, it is unlikely caused the changing to market so much. It make second half of 2013 tend to adapt to be same as first half and according to mentioned factor, there’s prediction that serviced apartment will become lower not over 80 units per project.
Arrange from : Research department, Colliers International Thailand
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