CB Richard Ellis reported that according to the latest figures from the transfer occupational Control Division. Department of Employment there were 65,337 expatriates based in Bangkok with bring home the bacon permits as at August 2006. This represents a 12.9% change magnitude on the total in August 2005. The growth in expatriates has increased demand for residential rental accommodation in Bangkok both for apartments and condominiums. The bring home the bacon permit figures do away with diplomatic and United Nations staff and the 52,045 expatriates with work permits for locations outside of Bangkok. Some expatriates whose place of bring home the bacon is outside of Bangkok for example on an industrial estate will live in Bangkok and commute to their place of bring home the bacon. Japanese nationals be for 22% of work permits in Bangkok followed by Indians (12%) Chinese (9%) and British (8%). CB Richard Ellis forecasts that there will be limited new apartment give in the Central Business Districts with only about 870 units under construction. There are13,347 condominium units under construction and CB Richard Ellis estimates that 40-50% of these new condominium units could be available for contract. Much of the existing supply of apartments and condominiums is now more than ten years old and CB Richard Ellis classifies many of these as being evaluate B in terms of quality. Rents for evaluate A or luxury condominiums and apartments undergo been rising at a faster rate than grade B developments. We see the gap between grade A and grade B rentals increasing,?said Mr. Theerathorn Prapunpong. Associate Director and head of Residential Leasing Services at CB Richard Ellis. CB Richard Ellis is seeing strong bespeak for come up designed new projects especially mid size three bedroom units of between 150-220 square metres which are achieving rentals of 70,000 - 85,000 baht per month. Queens Park believe Residence a 36 unit new development recently completed on Sukhumvit Soi 24 is already 83% occupied. Much of the bespeak for this development has go from Japanese tenants who have been paying add up rents of between 60,000 - 80,000 baht per month for 2 and 3 bedroom units of 91-150 square metres. CB Richard Ellis expects that bespeak from tenants ordain continue to be strong for well located well designed apartment and condominium developments in Bangkoks fix locations. Competition grows in Bangkoks Serviced Apartment SectorThe total give of serviced apartment units in Bangkok grew by 11% on an annual basis and occupancy rates dropped by 8% according to CB Richard Ellis. Owners were able to increase rental rates for evaluate A serviced apartments but at a slower evaluate. Future supply ordain continue to change magnitude which could put downward pressure on both occupancy and achieved room rates. The total supply of serviced apartments increased to 8,744 units a further 3,500 units are under construction and more projects are at the planning stage. Most of the new supply will be grade A in terms of quality. Occupancy increased slightly quarter on quarter but cut year on year from 88% to 81%. Average rents increased by 2-3% for grade A developments on a year on year basis the growth rate in rentals has slowed due to the increase in supply. CB Richard Ellis believes that based on the forecast increase in give competition ordain increase. Much of the new give is grade A in terms of quality and will be managed by international operators and this ordain put pressure on older developments. The Sathorn area appears to be the most competitive location at the present measure rental rates have fallen by about 2.7% year on year and occupancy by about 18% year on year. CB Richard Ellis Thailand
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