Real Estate Press Releases Monday January 14, 2019 17:43
Bangkok--14 Jan--CBRE Thailand

Despite increased competition from rental units in condominiums, the prospects for the single ownership apartment market in the prime areas of Bangkok are still positive, according to CBRE, an international property consultant company. Most expatriates working in Bangkok rent rather than buy a property.

The expatriate rental market is competitive because the number of expatriates working in Bangkok is not growing. The only nationality where numbers are growing are Chinese and generally most Chinese expatriates have much lower housing budgets than Japanese, American and European expatriate tenants who have been the traditional source of demand for central Bangkok residential rental property.

Based on over 3,000 residential rental transactions over the last ten years completed by CBRE, rental budgets have not grown with the median monthly rental of around 90,000 baht for a three-bedroom unit and 80,000 baht for two-bedroom unit.

CBRE focuses on the upper end of the market, so these numbers are higher than the average achieved rents for the whole of the expatriate rental market.
Most expatriates only want to live in a limited number of locations with the preferred locations being between Asoke and Thonglor on Sukhumvit Road, Lumpini and parts of Sathorn.
The choice for most expatriates is to rent in an apartment where one entity owns the whole building or from an individual buy-to-rent investor in a multi-ownership condominium building.

Based on the latest survey by CBRE Research, there are only around 10,000 units in expatriate standard single-ownership apartment buildings in downtown Bangkok. By comparison, there were 80,000 condominiums in the same preferred expatriate rental locations and CBRE estimates that 35-40% of these units are owned by buy-to-rent investors. There is limited new apartment supply, but continued growth in condominium supply.

Many tenants, particularly Japanese expatriates, prefer to rent in apartment buildings where they have a single point of contact with the owners' representative for all management and maintenance issues.
In a condominium, the building's property manager is only responsible for the management of the common areas not the maintenance inside the units.

"Although expatriate tenant numbers and their rental budgets are not growing, there are still profitable opportunities for apartment developers despite increased competition from rental units in condominiums," said Mr. Theerathorn Prapunpong, Head of Advisory & Transaction Services - Residential Leasing for more than twenty years at CBRE Thailand.

The key to success for renting out residential properties is not just the location but providing the optimum unit size maximising the utility of the space and providing a high standard of finishing, furnishing, facilities and appliances.

CBRE is the sole leasing agent and property manager for Jitimont Residence on Soi Thonglor 16, opposite J Avenue, recently completed.

The development is a good example of how single-ownership rental apartments can still compete with condominiums with a range of units from one to three bedrooms together with a design and specification that appeals to expatriate tenants.

Looking forward to 2019, Mr. Theerathorn does not expect that will be a big increase in the number of expatriate tenants or an increase in their housing budgets but the best quality apartment developments will still achieve high rentals and occupancy.

Latest Press Release

CFTE ผนึกกำลัง MACALLINE จัดมหกรรม CBD-IBCTF (เซี่ยงไฮ้) ยิ่งใหญ่กว่าเดิมในปีนี้

China Foreign Trade Guangzhou Exhibition General Corp. (CFTE) ผู้จัดมหกรรมแสดงสินค้าตกแต่งอาคาร China International Building & Construction Trade Fair หรือ CBD-IBCTF (เซี่ยงไฮ้) เตรียมผนึกกำลังกับ MACALLINE แบรนด์เฟอร์นิเจอร์ตกแต่งบ้านชั้นนำของจีน...

CFTE Partners with MACALLINE to Present An Upgraded CBD-IBCTF (Shanghai) 2019

China Foreign Trade Guangzhou Exhibition General Corp. ("CFTE"), organizer of the China International Building & Construction Trade Fair (CBD-IBCTF (Shanghai) or "the Fair") will partner with MACALLINE, a leading Chinese home furnishing and service...

ITOCHU partners with MQDC on Whizdom Asoke-Sukhumvit, investing in upscale Bangkok condominium

In its first investment in Thai property in over 20 years, Japanese giant ITOCHU has invested in MQDC's Whizdom-Asoke Sukhumvit condominium, reaffirming the global appeal of Bangkok real estate. 21st February 2019, Bangkok – MQDC has formed a joint...

ภาพข่าว: เอสซีจี ซิเมนต์ ก้าวไปอีกขั้นกับนวัตกรรม 3D Cement Extrusion Printing รายแรกในไทย

นายสยามรัฐ สุทธานุกูล (ขวา) Chief Marketing Officer-Cement and Construction Solution Business ธุรกิจซีเมนต์และผลิตภัณฑ์ก่อสร้าง เอสซีจี และ นายเฉลิมวุฒิ สงวนญาติ (ซ้าย) หัวหน้ากลุ่มงานวิจัย Mortar Technology หน่วยงาน Research and Innovation Center...

Photo Release: RML commences development of the most iconic One City Centre project

Prof. Dr. Surakiart Sathirathai (4th from right), Chairman of the Board of Directors, Lionel Lee (3rd from right), Chief Executive Officer along with the Raimon Land Plc (RML) management team are seen together in this joyous moment of the "One City...

Related Topics