Bangkok Apartment Research

Bangkok Apartment Research: Data Source This is an extract of the Bangkok Property Report, is a quarterly subscription report. The report brings professional analysis and transparency to the Bangkok property market which can, for the right projects, generate some of the highest returns in Thailand. Full Bangkok Property Report Bangkok apartment listings The report provides detailed information and analysis from CB Richard Ellis' comprehensive and unrivaled Bangkok and Thailand property databases, combined with our own exhaustive market and property surveys, coupled with the latest and most reliable secondary data from governmental agencies and private operators. The reliability and value of the research is the market understanding and expert opinion drawn from over 20 years of CB Richard Ellis' full-scale operations in Thailand. The data in this page focuses specifically on the Bangkok apartment market.

Bangkok Apartment classifications Our survey covers apartments in the downtown area of Bangkok which match expatriates’ requirements, with rents of more than THB 20,000/month. The survey concentrates on four areas: Sukhumvit, Silom/Sathon, Central Lumpini and Riverside/Rama III. We have covered single-ownership buildings and excluded multiownership condominium buildings with units for rent.   Grade A Bangkok Apartment projects in the most favorable locations with a high level of unit features and amenities (fully-equipped kitchen, laundry, high-quality finishes) and community amenities (fitness center, garden & park, swimming pool). Grade A apartments have a good design, a high standard of decoration and are well-maintained. Moreover, Grade A apartments provide a secure environment and adequate car parking. They target tenants who are willing to pay rents above the average for the area. Grade B Bangkok Apartments in less favorable locations and with buildings which are typically older than Grade A apartments. Grade B apartments provide good to moderate amenities, design, decoration, maintenance and security.For the purposes of this report, we have combined freehold condominiums, leasehold condominiums and leasehold apartments. We classify units into four categories based on price per unit. Classifications are based on the maximum number of units in a project that fall into a category; for example, a project with three luxury, five high-end and two midrange units would have all apartments classified as high-end, because we consider the project to be high-end, since the highest number of apartments in the project are high-end.

Bangkok Apartment Areas: Definition Silom/Sathon The area incorporating Silom, Sathon, Surawong, and Narathiwas-Ratchanakarin (north of Chan Road) Roads, as well as the sois in between Central Lumpini The area incorporating Wireless, Ploenchit, Rajadamri, Chidlom, Langsuan, Sarasin and Ruamrudee Roads, and other sois in between Sukhumvit The area incorporating Sukhumvit Road from Soi 1-65 and Soi 2-44, as well as other sois in between Riverside/Rama III The area incorporating Charoenkrung, Charoennakorn, Rama III, and Narathiwas- Ratchanakarin (south of Chan Road) Roads, as well as the interlinking sois

Bangkok Apartment - Quarterly Highlights     • In Q3 2011, there was a slight increase in total supply.  The total number of apartment units increased 1.0% Q-o-Q and 4.2% Y-o-Y, from 11,839 units in the last quarter to 11,953 units.    • Occupancy in Q3 2011 was at 85.7%, a rise from 85.2% in Q2 2011.  The total take-up was 10,242 units for this quarter, up from 10,088 units in the last quarter.   • The Central Lumpini area posted the best results and the highest achieved rents with Grade A rents of THB 433/m2/month, down 1.6 % Y-o-Y but up 1.2 % Q-o-Q. • As of Q3 2011, the number of expatriates holding work permits in Thailand increased from 96,191 in Q2 2011 to 98,819 in total.  Japanese made up 22% of the total.   • We are seeing more incoming expatriates choosing to rent in newly completed condominiums rather than older apartments. There are more new condominium developments than new apartment buildings.   Bangkok Apartment - Total Supply In Q3 2011, the apartment supply in the downtown area of Bangkok totalled 11,953 units, increasing 1.0% Q-o-Q, from 11,839 units in Q2 2011 and 4.2% Y-o-Y as two apartment buildings were completed including 39 Boulevard and Promphan 53. 114 new apartment units were completed this quarter. These 114 new units were supplied from projects located in Sukhumvit area.  We expect that three projects with 106 units in the Sukhumvit area will be finished in 2011 and two projects with 63 units will be completed in 2012. Apartment units in the Sukhumvit area accounted for 71% of the total supply whereas Silom/Sathorn had 15% of the total downtown apartments.  Central Lumpini followed with 8% and Riverside/Rama III with 6%.   Bangkok Apartment Rental   Achieved rents in Q3 2011 did not considerably change from the last quarter.  The Central Lumpini area posted the best results and the highest achieved rents with Grade A rents of THB/ 433/m2/month, a drop of 1.6% Y-o-Y but increase 0.5% Q-o-Q. The Silom/Sathorn area recorded the second highest achieved rents with Grade A rents of THB/ 378/m2/month. We calculate apartment rents based on a basket of buildings. There are other factors arising from the mechanism of supply and demand that affects rents; for example, smaller units tend to achieve higher rents per m2 than larger ones. The large number of condominiums slated for completion in the near future will greatly increase competition for those apartments.  There could be as many 23,355 condominium units completed in the expatriate rental area over the next two years and we expect that up to 50% of these could be available for rent. Condominium developers are almost all focusing on new launches of one and two-bedroom units.  This will certainly increase the level of competition in the condominium and apartment rental markets for small units. This is an extract of CB Richard Ellis Bangkok Property Report. Click to subscribe or for further details.