Market Research B A N G KO K apartment M A R K E T BANGKOK APARTMENT MARKET HIGHLIGHTS | 4 th q u arter | 2 0 0 8
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The Knowldege Report B AN G KO K A PA RT M EN T M A R K E T |
4 th Q u a rt e r
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2008
BANGKOK APARTMENT MARKET OVERVIEW Total Current Supply At the beginning of 2008, the supply of apartment was approximately 10,113 units. During the year 2008, there were approximately 530 units added to the supply, thus the current total supply of apartments is approximately 10,643 units in the Bangkok expatriate apartment market.
The majority of apartment supply is in the Sukhumvit area, representing about 76% of the total, followed by the Central Business District and the Central Lumpini area, representing about 15% and 9%, respectively.
Figure 1 : Supply of apartments by location, Q4 2008
Source : Colliers International Thailand Research
Future Supply Additional supply of apartment projects in 2009 and 2010 will be approximately 1,166 units, mostly concentrated in the
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Sukhumvit area. The majority of supply will be added in 2009, with approximately 960 units.
The Knowledge Report | 4th Quarter | 2008 | Bangkok Apartment Market
Future Supply Additional supply of apartment projects in 2009 and 2010 will be approximately 1,166 units, mostly concentrated in the
Sukhumvit area. The majority of supply will be added in 2009, with approximately 960 units.
Figure 2 : Future new supply of apartment units by year, Q4 2008
Source : Colliers International Thailand Research
Demand Trends Occupancy and Rental Rates The overall occupancy rate of apartments is high, with an average of 90.89% as of the end of Q4 2008. Grade A occupancy was at 90.89%, whilst Grade B was at 90.88%. The average rental rate in the Bangkok expatriate apartment market was THB 349 / square metre / month. The average rental rate of Grade A was THB 457 / square metre / month as of the end of Q4 2008, whilst Grade B was THB 303 / square metre / month.
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In terms of location, Grade A in Central Lumpini showed the highest rate per month, with an average of THB 509 / square metre, followed by Grade A Central Business District and Grade A Sukhumvit area, with averages of THB 469 and THB 442 / square metre, respectively.
The Knowledge Report | 4th Quarter | 2008 | Bangkok Apartment Market
Outlook: Under current market conditions, the apartment market is likely to experience declining demand growth. Although Thailand remains an important base for many multinationals, many with staff working all around South East Asia, due to Bangkok acknowledged competitiveness as a communication and transportation hub offering an attractive lifestyle that would be either very expensive or not as agreeable or safe in other South East Asian countries, by year end many multinationals were implementing or planning downsizing or closures, both in the manufacturing and services sectors. The key Japanese market could be particularly badly affected by these developments, which would have a strong impact on the core Sukhumvit apartment market. Many expatriates who have been asked to lower their accommodation budgets, which will put downward pressure on the upscale market, although middle-market, more affordable apartments may stand to benefit in the short term.
293 offices in 61 countries on 6 continents USA 99 Canada 19 Latin America 18 Asia Pacific 62 EMEA 95 US$ 2 billion in annual revenue 868 million square feet under management 11,048 Professionals
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Colliers International 17/F Ploenchit Center Klongtoey Bangkok 10110 Tel: 662 656 7000 Fax: 662 656 7111
This report and other research materials may be found on our website at www.colliers.co.th Questions related to information herein should be directed to the Research Department at the number indicated above. This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. Colliers International is a worldwide affiliation of independently owned and operated companies.
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This report and other research materials may be found on our website at www.colliers.co.th Questions related to information herein should be directed to the Research Department at the number indicated above. This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. Colliers International is a worldwide affiliation of independently owned and operated companies.