Expats’ Demand For Housing On The Rise

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Expats’ demand for housing on the rise

BANGKOK: -- Demand for expatriate accommodation is growing, but new supply of apartments, serviced apartments and condominiums means that the market will remain competitive, according to property consultant CB Richard Ellis.

Statistics published by the Alien Occupational Control Division of the Department of Employment show that there was a 13-per-cent increase over the last 12 months in the number of expatriates with work permits in Bangkok, excluding diplomats. The number of Japanese expatriates rose by 15.5 per cent.

“Most of these expatriates choose to rent rather than purchase because many of them are only likely to be in Thailand for two to three years,” said Theerathorn Prapunpong, the head of residential leasing services at CB Richard Ellis (Thailand).

“As the Thai economy continues to grow, expatriate numbers are expected to increase,” he added.

But accommodation supply is also on the rise. Fourteen apartment projects with a total of 500 units are expected to be completed by the end of next year.

In addition, about 8,000 condominium units will be completed in the downtown area during the same time period. Many of these are small, aimed primarily at the Thai end-user market, and will not compete for expatriate tenants.

The increase in supply as well as refurbishment of existing projects means that the market will remain competitive, said CB Richard Ellis.

Expatriate tenants continue to focus on the traditional locations of Sukhumvit, Lumpini and Sathorn, with a sub-segment preferring locations next to schools such as the ISB and Bangkok Pattana.

Currently, the downtown apartment market enjoys a 90-per-cent occupancy rate, but rentals in older buildings that have not been refurbished have fallen.

With demand and supply both increasing, CB Richard Ellis believes that rents for the best-quality units will rise but supply competition will mean that rentals for un-renovated buildings and units will fall.

--The Nation 2004-09-15

Related link:Bangkok serviced apartments