Bangkok’s single-ownership expatriate standard apartment market is still going strong even as competition from rental units in condominiums continued to grow, CBRE Thailand reported.
Areas including Sukhumvit, Lumpini and Sathon remain the most popular choice for expats in Thailand as they are close to the central business district and public transportation. Renting is preferred by expats in Thailand as they stay in the country for two to three years on average and are not looking to buy.
There are not many houses or townhouses for rent in most expat areas in Bangkok, so apartments and condominiums are the most attractive option. There is some competition for studio and one-bedroom serviced apartments but not for larger units, according to CBRE.
The Labour Ministry estimates the number of expatriates with work permits in Bangkok grew by 9.5 percent in the first quarter of this year bringing the total number to nearly 79,000.
The current occupancy rate for expatriate standard apartments in the most popular areas is over 90 percent with about 11,000 units available. These areas have 92,800 standard condo units in total with 30-40 percent being rented out by their owners. CBRE noted the occupancy rate for condos in these areas of Bangkok is close to 80 percent.
Expats tend to prefer to rent apartments rather than units from individual owners in a condo as it allows them to go directly to the building owner for repairs and requests. The individual owner of a condo is responsible for the any maintenance the unit might need while the building’s property manager is only responsible for the common areas of the building. This arrangement makes it difficult for tenants to get owners to repair items quickly at times.
There are only 415 apartment units in single-ownership buildings under construction in the most popular expatriate locations at the moment, according to CBRE. On the other hand, 27,000 condominium units are under construction in these areas with 63 percent planned to be one-bedroom units.
