By Andrew Batt:
Bangkok’s serviced apartment sector is facing increasing competition, with the number of new units being built falling every year since 2009.
In its latest Bangkok Serviced Apartment Market Report, Colliers Thailand International noted that fewer Serviced Apartments came onto the market in Q2 2012 than in the first three months of the year, however a 4.8 percent drop in demand kept rental rates stable.
The report revealed there will be approx. 18,100 Serviced Apartment units available in the Thai capital at the end of 2012. The lower Sukhumvit area boasts the largest proportion of units currently.
A new trend, according to Colliers, has seen many hotel and condominium developers converting some units in their projects into Serviced Apartments, alongside offerings from upscale and luxury hotels that are offering monthly packages similar to those being offered by standalone Serviced Apartment providers.
Average occupancy, according to Colliers, dropped 4.8 percent in both Grade A and Grade B offerings, however occupancy remains higher than in the same period in 2011.
Foreigners, said the report, are focusing more on condominiums and apartments in the city area which offer similar facilities but lower monthly rentals than Serviced Apartments.
“The Thailand Hotel Association continues to try to force the Ministry of the Interior to provide control measures on serviced apartments without a hotel license, which are not permitted to allow ‘per day’ or short-term clients,” the report said.
“Should the government take action, this will have an effect on the serviced apartment market.”
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