For the first time in 2019, the percentage of Japanese expats in Thailand decreased to 20%. In fact, as of April 2019, the number dropped to 34,133. According to the research done by CBRE, they see a change in demand in regards to Thai rental properties.
Families of expats who work in Thailand are well-compensated
The common practice when expats move and reside in Thailand, their families can go along with them too. Employers grant expats to not only receive benefits and incentives but also their family members. However, there might be changes to this regulation of companies since more expats are now considering 1-bedroom units. Because before, expatriates often rent 2-bedroom apartments and condominiums. The demand for a 1-bedroom property type is increasing due to the fully occupied single rental properties.
Moreover, property owners and landlords cannot put an increase to rent fees over time due to the unchanged accommodation allowance from companies. Landlords will risk their income if they bump up the monthly rate.
A wave of Chinese expats moves in Thailand
The number of Japanese expatriates in Thailand is decreasing. Although, the community of Chinese expats is expanding, especially in Sutthisan and Huai Khwang. They prefer to live within these neighbourhoods since rental properties are more affordable.
Convenient area with affordable housing options
Sutthisan is a popular neighbourhood for young professionals and urbanites who are working in Ratchada-Rama 9, Asoke, and even Silom-Sathorn. The peaceful residential neighbourhood is popular to such groups because the housing options offer great value for money.
Bangkok’s new Chinatown
Huai Khwang is an emerging neighbourhood near Chatuchak, Bang Kapi, Watthana and Ratchathewi. Restaurants, markets, shopping malls, and bars are here and there. The area is not technically like Yaowarat, but it is known to develop as the “New Chinatown” since there are numerous Chinese entrepreneurs in the area. Chinese-style coffee shops and not to mention the hotpot restaurants are sprawling in Huai Khwang.
Now that it is clear that a 1-bedroom unit and fees matter, landlords should up their game to succeed in the competitive market. The changes in demand may affect those who have larger units, however determining the right audience will the business.
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