In a statement from CBRE, a firm specializing in international property consultation, it was clear that the residential property rental market in the downtown area of Bangkok is thriving mainly because of expatriates that are assigned to work here in Thailand. These foreign workers are looking for places to rent but they are only attracted to few areas in the capital. Expatriates are more likely to choose apartment for rent in Bangkok along with serviced apartment or condo units than any other form of accommodations.
The problem is that there is a decline in the numbers of expatriate that are coming to the country. For many years, data have shown that the average monthly rent that these expatriate tenants have budgeted for their accommodation remained the same with no increase. CBRE Research revealed that only limited supply of apartments are being constructed while there are many condominiums entering the market soon.
The market remains competitive judging by the continued increased in the supply yet there is limited growth evident when it comes to the demand. Opportunities are not scarce though for investors of apartment developers as well as those buying condo units in order to place it for rent. The main thing they have to understand is the requirements that are set by the tenant. This way, investors will be able to make the most of the occupancy and consider the best rent for every square metre of usable space.
In average, an expatriate tenant stays in the country for around three years before they leave. When a new tenant comes in, they decide once more to look for the best place to live in. In a survey conducted by the CBRE Research for the second quarter of this year, there are around 10,000 apartment units that are available on in-demand expat locations such as Sathon, Sukhumvit and Lumpini. In the same areas, there are about 76,000 condo units and the units for rent are from 25,000 and 30,000.
It still depends on what the expatriate tenant prefers such as for Japanese they prefer apartment for rent in Bangkok that are single-ownership compared to multi-ownership condo units because this gives them control with regards to the maintenance of the place.