Bangkok Serviced Apartment Q3 2010

Executive Summary The Bangkok serviced apartment market continues to face challenging times in 2010 following events in April and May which caused both long term and shorter stay occupancies to drop. From the beginning of 2009 to the end of 2011 overall supply of serviced apartment units could rise by over 40%. This will be difficult for the market to absorb. Occupancy has risen from the lows of Q2 2010 as the political situation stabilizes. However the long term trend still seems to be downwards. Early Sukhumvit continues to be the mainstay location but Late Sukhumvit is well and truly on the map with the growth in Thong Lor in particular. Serviced apartments continue to compete head on with hotels for the shorter term stay market. In such challenging times the market will need to look for new niche products such as in medical tourism or hybrid residence/offices.