CBRE shed some like on the market for expats looking for an apartment for rent in Bangkok, stating that, in spite of the increased competition from rental units in condos, the numbers for the single ownership apartment market in the capital’s prime areas are still good.
The international property firm says that most expatriates that work in the Thai capital opt to find an apartment for rent, rather than purchase a property. This, on top of the number of expats working in the capital, CBRE says is the reason for the heavily competitive rental market.
The only expat nationality that’s on the up are Chinese, with the general majority of Chinese expats possessing smaller housing budgets than other expats in Bangkok, like Americans, Europeans and Japanese, who have traditionally been the source of demand for many apartment for rent in Bangkok and its city centre, CBRE explains.
Their data was based on more than 3,000 residential rental transactions that was completed by the CBRE over the past decade. Additionally, their data says that rental budgets haven’t really gone up, with the median monthly rental sitting around Bt90,000 for a three-bedroom unit and Bt80,000 for two-bedroom units.
CBREis primarily focused on the higher ends of the market, so their numbers are very likely to be higher than the average achieved rents for all of the expatriate rental market.
General data shows that expat prefer a limited number of locations to look for an apartment for rent in Bangkok, with the preferred areas being between Asoke and Thonglor on Sukhumvit Road, Lumpini, as well as certain parts of Sathorn. Most of them also opt to rent an apartment where only one entity owns the whole building, or from an individual buy-to-rent investor in a multi-ownership condo building.
According to the latest survey by CBRE research, there are only about 10,000 units in expatriate standard single-ownership apartment buildings in the downtown sector of the capital. In comparison, there are about 80,000 in the same preferred expat rental locations, and CBRE says that about 40% of these are owned by buy-to-rent investors.