Bangkok’s serviced-apartment sector is expected to face a chronic oversupply in 2011, when 38 new projects with 6,580 units worth Bt27 billion come on stream, a study by Colliers International Thailand warned yesterday.
Twelve of the 38 projects are being jointly develop between local and foreign groups. The global partners are mostly from the Middle East, Singapore and the United States.
The remaining 26 are by local developers, but most of them will be signing contracts with global chains to run the apartments.
A breakdown of the new supply shows a strong concentration along Sukhumvit Road, with 3,659 units, or 56 per cent of the new supply.
The central business district (CBD), which includes the Sathorn, Silom and Lumpini areas, will house 1,029 units, or 15.6 per cent of the new supply.
The remaining 1,892 units are located outside of these areas.
Colliers managing director Patima Jeerapaet said there were now about 10,685 units in 75 serviced apartments in Bangkok. The sector enjoyed an average occupancy rate of 83.33 per cent last year. In 2006, average occupancy was slightly higher at 85 per cent. (Nation)
It means that in 3 years, the offer will increase… by 62 % (from 10 685 units now to 17 265 units in 2011).
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