By Mark Harris
Hong Kong is in the midst of a continuous
7-8% year-on-year growth in the financial,
insurance and real estate sectors, so
demand for serviced apartments continues
to remain healthy with nearly 100%
occupancy rates being driven by limited
supply. Source: Harvest Capital Partners.
By the end of 2007, Bangkok's serviced
apartment sector had increased supply to
11,963 units; a year-on-year growth of 11%.
Average rental rates of 5-star serviced
apartments in CBD and in Sukhumvit areas
at end of 2007 were Baht 1,370 ($40) per
square metre and Baht 1,394 per square
The average occupancy rate of Bangkok
serviced apartments decreased from 85%
in 2006 to 83% in 2007, facing a year-onyear
decrease of 2.4%.
There is still a lot of demand for serviced
apartments despite current global economic
turmoil. However, in-line with a general
decrease in the duration of expat relocations,
companies are starting tomove long-term
expatriates on long leases in villas, bungalows
and condominiums to serviced apartments
with flexible leases.
It is predicted that some key serviced
apartments will focus more on long-term
stay guests and family guests to improve
Singapore's Frasers Hospitality plans to
add 5,000 serviced apartments by 2010
to 8,478 units by 2010. China, India and
Vietnam are also on Frasers' radar for
growth given the continued rise in foreign
direct investments and sustainable
expansion in gross domestic product.
At least half of its serviced apartments
will be operated under management
contracts, from one-third currently.
Source: Knight Frank Newmark: Bangkok Serviced Apartment Market Annual Report
CBD Sathorn, Rajdamri, Langsuan, Saladaeng, Tonson, Silom, Wireless Road, Ploenchit, Suanplu and Rama IV.