Skip Ribbon Commands
Skip to main content

News Release

Bangkok

Supply of Luxury Apartments in Bangkok Contracting

Along with shifting occupier preferences, developers and operators are increasingly chasing higher yields by converting existing luxury apartment stock into condominiums, hotels, and serviced apartments.


​​While the supply of condominiums in Bangkok has grown rapidly over the last several years, the stock of luxury rental apartments has been declining steadily. With a wider variety of products, amenities and locations that the condominium market has to offer, traditional luxury apartment tenants, most of whom are expatriates or long-stay tourists, are increasingly turning away from luxury apartments. Along with shifting occupier preferences, developers and operators are increasingly chasing higher yields by converting existing luxury apartment stock into condominiums, hotels, and serviced apartments, according to Andrew Gulbrandson, Head of Research and Consultancy at JLL, a professional services firm specializing in real estate.

Since 2008, luxury apartment supply in Bangkok has contracted. While very few new developments were added, many luxury apartments have been converted to serviced apartments, which typically provide daily amenities such as cleaning and housekeeping services while also being available for short-term stay. At the same time, some luxury apartments have been refurbished and then marketed as freehold condominiums.

With greenfield condominium developments and refurbished/renovated luxury apartments that have been converted to condominiums yielding returns that are more than double that of existing luxury apartments, JLL expects the future supply of luxury apartments to be limited over the short term.

Apartment Stock.jpg

However, this does not mean luxury apartments will soon become irrelevant as demand for luxury in Bangkok will continue. 

“Luxury apartments have a number of advantages over rental condominiums,” said Mr. Gulbrandson.

He explained that most of the luxury apartments are located in downtown and commercial areas, primarily in the Central Bangkok and the Central East sub-markets that include Sathorn Road, Silom Road and Sukhumvit Road. These locations have traditionally offered tenants good accessibility and an abundance of amenities. In addition, with much of the existing luxury apartment stock built before the 1997 Asian Financial Crisis, these developments typically feature much larger living spaces than more recently built condominiums. JLL’s research suggests that the demand for 3 bedroom units from large expatriate families has been increasing steadily over time.

Most of the luxury rental apartments also offer relatively larger common space and full recreational facilities. These amenities include large swimming pools, fitness/sauna rooms and tennis courts, which are not typically provided in many new condominium projects. 

On top of these advantages, these luxury apartments also offer more competitive rents on a per square metre basis than the newer condominiums.

For these reasons, luxury apartments will remain relevant although they may not experience the same heights of the 1980s and 1990s.