Q3 2012 | SERVICED APARTMENT
thailand
Bangkok serviced apartment Market REPORT Bangkok Serviced Apartment Market Executive Summary Serviced apartments are still popular with foreign companies in Bangkok, although the market is changing due to global economic conditions. Fewer new serviced apartments came on to the market in Q3 2012 than in the previous quarter. Around 420 units have opened so far this year, and another 156 are due to open by the end of 2012.
market indicators Q2 2012 / Q3 2012 new Supply RENTALS Occupancy
Occupancy rates are stable at around 78%, although that is lower than at the start of the year. Serviced apartment projects are trying to keep their clients by renewing contracts early at the current rate, and offering special corporate discounts. However, the rental rates for top quality serviced apartments rose slightly in Q3 compared to the previous quarter. Foreign companies have had their budgets for staff accommodation cut due to the global financial situation. However, political and economic stability in Thailand is prompting many foreign companies to set up offices here, particularly those looking for a base from which to conduct business in ASEAN. Foreign direct investment and the number of expatriates in Bangkok continue to rise, and that will continue to drive demand for serviced apartments. Historical Supply, Q3 2012
Source: Colliers International Thailand Research Note: F = Forecast
Approximately 420 units were completed in the first three quarters of 2012, and nearly 156 units are scheduled to complete by the end of the year. The total supply of serviced apartment units at the end of 2012 is expected to be
www.colliers.co.th
around 18,259 units. GM Serviced Apartment, on Sukhumvit Soi 20, was completed in September 2012, with a total of 89 units ready to rent.