As a result of increasing Japanese production activity in Thailand, the number of Japanese expatriates
continues to increase, fueling demand for Bangkok
apartments and condominiums for rent, according to Mr. Theerathorn Prapunpong, Director of Residential
Leasing Services at CB Richard Ellis,
the leading international property consultants
in Thailand.
Japanese work-permit holders already comprise the largest group of work-permit
holders in
Thailand.
According to the Ministry of Labour, as of February 2008, 24,740 out of
122,262 BOI and temporary work-permit holders were Japanese, roughly equal to
20% of the total.
The most popular residential locations with Japanese expatriates are Sukhumvit
Soi 21-55. This area offers convenient access to a wide range of facilities,
including the BTS, expressways, supermarkets, hospitals, shopping and
entertainment complexes, as well as proximity to the Japanese school.
Supermarkets that cater more to the Japanese crowd include Fuji Super 1,
Fuji Super 2, the Emporium and Villa Market at J-Avenue.
When it comes to unit type, the tenant’s family size is the deciding factor. For
single tenants, a one- or two-bedroom unit in the region of 80 square meters is
sufficient, and budgets can range from THB 45,000 per month all the way to THB
75,000 per month if the person is an executive with a higher compensation level.
Japanese couples, even without children, prefer larger units, and these are
generally of the two-bedroom type, with floor space of around 100 square meters.
Budgets are in the THB 60,000-80,000 per month range, depending on the
unit, personal preferences, and spending limits.
Designs are quite important as Japanese tenants usually look for a higher level
of decoration and fittings, including wooden floors, high ceilings, built-in
closets and storage units, along with a spacious kitchen containing a large sink
and ample countertop space.
Units must include washing machines, four-burner electric stove, large fridge,
and a powerful water heater. However, a dishwasher is not necessary.
Required building facilities include a garden, children’s playground, and
exercise options such as a swimming pool or fitness center.
A wading pool, usually designed for children, is a plus. Also valued are
Japanese language capabilities or services and shuttle transportation to nearby
BTS stations, supermarkets, and hospitals.
“Also key is the presence of children-friendly facilities, such as ramps for
strollers, and other child safety precautions,” explains Mr. Noriyuki Matsuura, Manager of Japanese Residential
Leasing Services at CB Richard Ellis, a specialized team that focuses on
providing residential solutions for Bangkok’s burgeoning Japanese community.
High-speed wireless internet services should exceed 2Mbps as this allows for
viewing internet TV. As for cable TV,
the most popular package is the one that comes with the NHK option.
Most Japanese children tend to go to the Japanese school near Rama IX Road. Other
international schools are not popular with Japanese children, especially until
high school (age of 15 or so). This
is partly because it is essential for Japanese children who want to pursue
university in Japan to go to the Japanese school.
In line with Japanese investment in Thailand, the number of students
enrolled at the Japanese school has been steadily rising as well.
The school has grown from 1,759 students in 2001 to 2,401 students in
2007.
As far as contract terms, most residential leasing in this sector is done on a
one- or two-year contract. In two-year contracts, there is usually a
“diplomatic” clause that permits early termination in the event that the tenant
is transferred overseas for any reason. A 60-day notice period is usually
required in this case. In general, Japanese tenants are more likely to move at
the end of their lease period if they are not satisfied with the accommodations
and service at the property.
Apartments in downtown Bangkok enjoyed an occupancy rate of 90% in Q1
2008. No new supply was completed
during the quarter. Future supply
expected for completion in 2008 includes The Grand Sethiwan 2 housing 172 units
on Sukhumvit Soi 24 and the newly renovated Nithi Court comprising 14 units on
Sathon Road.
CB Richard Ellis expects that demand, especially from Japanese
expatriates, will grow in line with or outpace supply, keeping occupancy rates
well within the 87-93% range seen since 2000.
CB Richard Ellis Thailand : 21 May 2008
