Over the past year there have been a number of new apartment buildings appear in Bangkok, such as Baan Jamjuree, Grande 39, G.M. Grande, and Sofitel Residence. All of these buildings are 30+ story apartment buildings and comprise mainly of 3 bedroom units but also have some 2 bedroom units. Each building will have around 200 units, and the average unit size for the 3 bedroom unit is 210 ? 220 sq.
m., with monthly rental figures averaging 90,000 Baht/month. ALL of these buildings have sold out within 2 months of completion. They are all now full, with the exception of a few penthouse suites. Why? Perhaps the increase in expatriate numbers in Bangkok has influenced this high demand. The number of foreigners working in Bangkok has continued to increase over the past few years.
The average expatriate living allowance for management positions is around 80,000 Baht, so these buildings have set themselves a very realistic target audience. The few remaining penthouse units still available in these new apartments buildings are generally around 150,000++ Baht/month, and significantly less people are afforded this amount of living expenses. Another factor that has surely influenced the success of the new apartment buildings is the continued demise of the older apartment buildings. The generally level of maintenance and upkeep in apartment buildings in Bangkok is far inferior to the level of upkeep of hotels. There are of course a large number of hotels in Bangkok over 15 years old, and these are far more attractive and grand than the apartment buildings of the same age.
The new apartment buildings have also set there price structure very close to the existing older apartment buildings. Hence, it stands to reason that someone will choose the nice new building compared to the old building, if the price is just a fraction more. It is true that the older apartment building units are bigger. The average size of a 3 bedroom unit in an older apartment building may be 260 sq.m.
compared to 210 sq.m. in the new counterpart.
However, is seems that people are more than happy to sacrifice a little space for a nice new design. Besides, modern designers are far more skilled at utilising space nowadays. The trend seems set to continue. Development of new apartment buildings still seems a safe bet. The real question is; what is the future for the old buildings? How much do occupancy levels need to drop before the building owners decide that a revamp is needed?.
Written for Ideal Homes Real Estate: www.condobangkok.net www.apartmentbangkok.net