During the next two years, new serviced apartments are expected to boost the current supply further. For the period 2006 to 2010, approximately 2,243 units from 14 projects will be added into the market. The new developments include Fraser Sathorn on Sathorn Road with 78 units, Riverside Garden located on Charoen Krung Road with 250 units, Siam Paragon on Rama I Road with 150 units, Chamchuree Square (formerly CU Hi-tech) on Rama IV Road with around 120 units, Amantara located on Ratchadaphisek Road with 158 units, the Sathorn Grand Mansion project on South Sathon Road with around 100 units which is expected to be operational in 2007, Citadines Sukhumvit 16 with 79 units, Citadines Sukhumvit 23 with 140 units, the new Oakwood at the Column on Ratchadaphisek Road with around 200 units, Sofitel Residence in Asok with 72 units, Sofitel Residence Park Avenue in Sukhumvit 6 with 350 units and Somerset Grand Sukhumvit with 265 units. Citadines (part of the Ascott Group) has recently announced that it is planning a total of five serviced apartments with as many as 500 rooms by 2010. By the end of 2006, there will be a total of 11,343 units in inner Bangkok.

Strong demand

According to data obtained from EXSAMM (Executive Serviced Apartment Meeting and Marketing), the overall occupancy rate of 82% for Bangkok's serviced apartments sector in 2005 declined slightly from the previous year. The Sukhumvit area recorded the highest average occupancy rate of 91%. This is followed by the CBD area where the average occupancy rate stood at around 85%. The Sukhumvit area is still the most popular residential enclave favoured by foreigners due to its surrounding amenities and lower average pricing compared to the CBD. Lower Sukhumvit is fully supported by convenient infrastructure such as the BTS SkyTrain route and MRT mass rapid transportation underground interchange at Asok, ample international schools, restaurants, good hospitals, shopping centres, department stores and entertainment centres. Whilst serviced apartment projects in the CBD area remained the most popular in the high-end segment, stronger competition has pressured its occupancy rate to decline from its 2004 peak. (Figure 3)

In 2005, the Sukhumvit area recorded the highest occupancy rate for both Grade A and Grade B serviced apartments, with rates of 95% and 91% respectively. This is followed by the CBD area where the Grade A and Grade B serviced apartment segments achieved average occupancy rates of 85% and 87% respectively. Strong market fundamentals as well as aggressive marketing strategies by operators, including overseas road shows to attract foreigners, also helped in achieving high occupancy levels.