Bangkok Serviced Apartment Q2 2010

Executive Summary The Bangkok serviced apartment market is facing a difficult 2010 with a significant increase in supply while demand has fallen and is not likely to increase discernibly for Q3. Events in April and May have caused both long term and shorter stay occupancies to drop. The extended stay subset of the market has suffered in similar fashion to hotels. From 2009 to 2011 it is expected that overall supply of serviced apartment units will have risen by 40%. This will be difficult for the market to absorb. Occupancy has continued to fall in Q1 2010 to the 65-70% mark for long term stays. This pattern is likely to continue until supply stabilizes and demand picks up again. Thong Lor is the new darling of the market with a number of high end apartments springing up in this fashionable, sought-after area. Serviced apartments continue to compete directly with hotels for the shorter term stay market.