New research from CBRE Thailand shows that expats working in Thailand still prefer apartments and prices for these units are likely to rise due in part to a limited supply and high occupancy rates. The property consultancy estimated that there are 11,000 apartment units in the popular expatriate areas with nearly 300 new units that will be completed by the end of 2016.
At the moment there are 80,000 expats working in Bangkok. CBRE pointed out these people want to live in a limited number of areas such as Sukhumvit, Lumpini and Sathorn and most prefer to live in apartments where there is only a single owner.
In order to get the highest rental rates, apartment units must appeal to a wide range of tastes and be able to make the tenants feel as if they are living in their own homes. CBRE noted that quite a few expats still receive a housing allowance and are willing to use all of it but are not willing to spend beyond this total.
CBRE saw firsthand just how fast a popular apartment building could be rented out at the Philo Residence. The complex on Sukhumvit 24 was fully let out in three months and raked in an average rent of over THB800 per sqm. per month, which is one of the top rental rates achieved for apartments or condominiums in that area, according to CBRE Thailand who served as the sole leasing agent for the project.
“The reason for the high rentals and speed of leasing is that the apartments matched expatriate tenant requirements in terms of size, layout, specification and furniture,” Theerathorn Prapunpong, director of Residential Leasing Services at CBRE, stated. “We close about 400 leases on average for expatriates every year and by studying requirements and transaction data in our comprehensive database, we are able to analyze the market and have a good understanding of where expatriates want to live, what they want, and, most importantly, what they can afford to pay.”
