Q2 2012 | SERVICED APARTMENT
thailand
Bangkok serviced apartment Market REPORT Bangkok Serviced Apartment Market Executive Summary New serviced apartments are still being built and projects will continue to open until at least 2014, but they face increased competition from condominiums and apartments that offer a similar level of comfort and amenities in the same areas of the city, but at lower rents. An additional challenge is that the Thailand Hotel Association is trying to persuade the Ministry of the Interior to crack down on serviced apartments offering daily or short term lets, which are not permitted without a hotel licence. Should the Ministry take action, enforcement of this rule will have a significant impact on the sector. market indicators Q1 2012 - Q2 2012 new Supply RENTALS
The number of new serviced apartment developments being built has fallen every year since 2009 and will continue to decline. Fewer serviced apartments came on to the market in the second quarter of 2012 than in the first, but a drop in demand of 4.8% has kept rents stable. An estimated total of 18,100 serviced apartments will be available in Bangkok by the end of this year.
Occupancy
Historical Supply, Q2 2012
Source: Colliers International Thailand Research
Three new serviced apartment projects opened in the first half of the year with approximately 280 units in three locations, woof which are in the City area. The total supply of serviced apartment units as of the end of the first half of 2012 is approximately 17,970 units and it is
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expected to be approximately 18,100 units at the end of 2012. Due to intense competition, especially in the City area, development of new serviced apartments in Bangkok has decreased every year since 2009.