Demand

How much should you pay?

The rental rates for premium grade serviced apartments in both the CBD and Sukhumvit areas for 2005 increased by approximately 13% as compared to 2004. The average rents for Grade A serviced apartments in the CBD area rose from an average of 1,062 baht per square metre to 1,248 baht per square metre; about an 18% hike.

Within the Sukhumvit area, Grade A serviced apartment average rentals increased by around 8% from 966 baht per square metre to 1,039 baht per square metre. The increase was due to the strong demand from foreigners as well from newer and better serviced apartment projects offering more services and facilities. (Figure 4)

In 2005, the rental rates for Grade B serviced apartments increased only slightly, by about 1%, for both the CBD and the Sukhumvit areas. This current rental rate is seen to stabilise for the overall Grade B market. It is expected to remain firm at these levels. (Figure 5)