c o l l i e r s i n t e r n at i o n a l
| T H AILAN D
The Knowledge Report B a n gko k S e rv i c e d Apa rtm e n t M a rk e T | 1 s t Q U A RT E R | 2 0 1 0
Executive Summary The Bangkok serviced apartment market is facing a difficult 2010 with a significant increase in supply while demand has fallen and is not likely to increase discernibly for Q2. Market Indicators 2009 - Q1 2010
SUPPLY Demand
From 2009 to 2011 it is expected that overall supply of serviced apartment units will have risen by 40%. This will be difficult for the market to absorb. Occupancy has continued to fall in Q1 2010 to the 65-70% mark for long term stays. This pattern is likely to continue until supply stabilizes and demand picks up again. Thong Lor is the new darling of the market with a number of high end apartments springing up in this fashionable, sought-after area. Serviced apartments continue to compete directly with hotels for the shorter term stay market.
Rentals occupancy
Grading No recognized standard for rating serviced apartments exists in Thailand and therefore Colliers International Thailand have classified them based on various criteria, in which a summary is given below. Grade A Located in prime locations and luxury residential areas. Furnished to an exceptionally high standard. Offering recreational facilities and amenities similar to a Luxury or Upper Scale hotel. Managed by a top international branded operator or comparable local brand. Grade B Usually located in the centre but also in less prime locations. Furnished to a high standard but usually offers recreational facilities and a variety of services similar to an Upper or Mid Scale hotel. Managed by a lower-end international or domestic operator. Grade C Located in secondary locations. Furnished to a comfortable, but not luxurious, standard. Fewer provisions of facilities and amenities, similar to that of a Mid-scale or Economy hotel.
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