Expats drive booming apartment market

BANGKOK: -- Apartments in central Bangkok are enjoying 90 per cent occupancy rates, driven by strong demand from expats whose numbers continue to rise each year, a Jones Lang LaSalle property study revealed on Tuesday.

"An increasing number of expats has continued to sustain healthy performance in the apartment sector despite higher competition with condominiums for rent," said Dan Tantisunthorn, Head of Research at Jones Lang LaSalle - an international real estate consultant.

Although it is difficult to estimate the exact number of expats living in Bangkok, those who have been granted work permits by the government continue to rise on an annual basis.

The number of expats working legally in the capital rose from 47,107 at the end of 2004 to 54,607 at the end of 2005, up 16 per cent, and jumped another 5 per cent to 57,343 by mid-year 2006, according to Jones Lang LaSalle.

Many more expats are known to live in Thailand's capital without work permits, leaving the country every 90 days to renew their tourist visas. The government is mulling tightening regulations on tourist visas to crack down on these illegal residents.

According to Jones Lang LaSalle's study, 2006 will see a total of 34 new condominium projects with more than 7,600 units completed in central Bangkok, but the new space will not necessarily undermine the apartment sector.

"We do not believe the apartment market will be significantly affected by competition from condominiums due to the distinct natures of the two types of developments," said Dan.

"Apartments are purpose-built for rent and thus offer features that are tailored to tenant requirements, including specific conceptual and architectural designs, unit sizes, and furnishings as well as tenant management," he noted.

--DPA 2006-09-12

Subject to change October 1 I suspect.