Bangkok will witness lump sum rental increases this year for the first time in as much as 25-years, according to research from one real estate firm.
According the CBRE, there are a growing number of expatriates working in Thailand and most want to rent rather than buy residential accommodation. A significant amount of the demand is for large two- to three-bedroom units, which outstrips supply.
Most of the new condominiums (multi-ownership buildings) are of the one-bedroom type. There are few new single ownership apartments being built, limiting the stock of two-, three-, and four-bedroom units for rent in the most popular expatriate locations such as Silom, Sathorn, and Sukhumvit.
In 2015, only two new apartment buildings targeting expats are expected to open in the central business distruct; The Philo Residence on Sukhumvit Soi 24 and The Willows on Sathorn-Narathiwas Soi 7.
“It’s an exciting time for us,” said Theerathorn Prapunpong, Director of Residential Leasing Services, CBRE.
“There are a lot of new arrivals in the city, especially compared to last year.”
CBRE’s big forecast for 2015 is a likely increase in lump sum rents for two-, three- and four-bedroom units. This would be the first such rise in 25 years and would greatly benefit buy-to-rent condominium investors.