Apartment VS Condominium for Expat Market
While there is a number of new condominium developments launching in recently years and may have led us to believe the condo market now outperforms the apartment market in terms of the number of occupant. According to the study by CBRE, in the preferred area for expats ie, Sukhumvit, Lumpini and Sathorn, the occupancy rate for apartment is 90%, 10% higher than the condo market. CBRE’s findings suggest that expat tenants prefer renting in an apartment than a condominium, which reflects the nature of ownership of these properties where apartments are single-person owned. Tenants can go to the landlord directly for any maintenance issues and have them resolved quickly while that is not the case for condominiums. In addition, findings also suggest that due to a lack of apartment development in these areas as well as a majority of the units in condominium are one-bedroom the potential for the apartment market remains good especially for two- and three-bedroom units.
Mixed-use is a New Trend
A survey by The Nation on a future development projects in the next three years by nine property developers found that their projects will consist of a mixed-use which combines offices, condominiums, retail and hotel. The new concept serves a change of demand of the new generation who prefer to live close to where they work as well as being surrounded by amenities that serve their lifestyles. These development projects includeIconsiam at Charon Krung by Siam Piwat Group; Whizdom 101 at Sukhumvit 101 by Magnolia Quality Development Corporation Co (MQDC); Chao Phraya Estate at Charoen Krung by Country Group Development; Asiatique phase 2-5 at Charoen Krung by TCC Land Group; Super Tower on Rama 9 by Grand Canal Land; Central WestGate at Bang Yai district; Nonthaburi by Central Pattana; Singha Complex at Asoke by Singha Estate; Century 21; and Siam Sindhorn Co. It is aimed that each type of property development within the project will compliment others to sustain the demand and generate income. For example, the Central West Gate will launch the retail phase first to generate demand for residential in the area before launching the condominium for the second phase.
