A shift in the profile of Bangkok's expatriate population is reshaping the downtown residential rental market, bringing challenges to a sector long enjoying stable occupancy and rental rates. Over the past quarter-century, expatriates generally preferred to live in a few Bangkok districts, principally Sukhumvit, Lumpini and Sathon. The Sukhumvit area remains the most popular, owing to its convenient access to the BTS Skytrain, complemented by the variety of restaurants, shops and international schools.

Although overall expatriate numbers may grow, there is likely to be limited growth in demand from Western and Japanese expatriates, the traditional tenants for Bangkok’s downtown apartments and condominiums. Residential landlords in the downtown area of Bangkok should consider taking steps to enhance competitiveness by renovating ageing stock and improving property management. The apartment sector, comprising multi-let residential buildings held under single ownership, will be better placed to respond in the short term, due to the simplicity of undertaking building improvements and in making timely management decisions, both of which will be key to sustaining rents and retaining tenants.

Condominium owners will both need to get committees to maintain and improve common areas and also focus on the interior decoration and furniture of their units. Condominium interiors, just like hotel rooms, need regular upgrades and improvements to attract tenants.

By : bangkokpost.com