Sukhumvit remains Bangkok’s Rental Market Powerhouse, Driven by Expat Demand
bangkok’s rental housing market continues to be shaped by strong demand in the Sukhumvit corridor. Despite a minor quarterly fluctuation, the area maintains its dominance, fueled notably by a consistent influx of expatriates, notably from Japan. This report details the key trends observed in the second quarter of 2025, drawing on data from CBRE Thailand and insights from leading property operators.
Sukhumvit’s Commanding Market Share
Sukhumvit isn’t just a* part of bangkok’s rental scene – it *is the scene. Here’s a breakdown of its influence:
* Serviced Apartments: Sukhumvit accounts for a significant 65% of the total supply in downtown Bangkok.
* Apartments: An even larger 86% of all available apartments are located within the Sukhumvit area.
This concentration makes Sukhumvit the go-to location for those relocating to the city, solidifying its position as Bangkok’s rental hub.
Market Overview: Supply & Occupancy (Q2 2025)
The downtown Bangkok rental market saw moderate growth in the last quarter. Let’s look at the numbers:
* Serviced Apartments: Total supply reached 17,729 units, a 3.5% increase from the previous quarter,driven by new completions in Sukhumvit.
* Apartments: The apartment sector remained stable at 8,668 units, with no new projects launching during this period.
* Serviced Apartment occupancy: Averaged 84.8%, a slight 0.7% decrease quarter-over-quarter, but a healthy 6.2% increase year-over-year.
* Apartment Occupancy: Rose to 94.4%, up 1.3% from the previous quarter and 3% year-on-year, demonstrating strong demand.
These figures indicate a resilient market, even with increased supply in the serviced apartment segment.
Tenant preferences & Nationalities
Understanding who is renting is crucial. Here’s what the data reveals:
* Serviced Apartments: Two- and three-bedroom units were the moast sought-after, representing 33% and 30% of transactions, respectively.
* Apartments: Two-bedroom units dominated apartment rentals, accounting for 38% of all leases.
* Japanese Nationals: Remain a key driver of demand, particularly for properties in Sukhumvit. This demographic consistently favors the area for its convenience and amenities.
* Expat Population: Bangkok hosts 97,232 of Thailand’s 192,896 expatriates, though the overall number saw a slight dip. Chinese nationals currently represent the largest expat group (24%).
Rental Rates: A Closer Look
Rental rates continue to demonstrate upward pressure, particularly in prime locations.
Serviced Apartments (Grade A):
* Average: 1,261 baht per square meter per month.
* Sukhumvit: 1,271 baht per square meter per month – commanding the highest rates.
* Central Lumpini & Siam: 1,194 baht per square meter per month.
* Silom & Sathon: 1,099 baht per square meter per month.
Apartments (Grade A):
* Average: 584 baht per square meter per month, up 4.1% year-on-year.
* Central Lumpini & siam: 635 baht per square meter per month.
* Sukhumvit: 594 baht per square meter per month.
* Silom & Sathon: 505 baht per square meter per month.
New Developments & Key Players
Several players are shaping the future of Bangkok’s rental market.
* The Ascott Limited: Leads the international branded residence sector, with 32.6% of the total supply. Their new property, La clef Bangkok by The Crest Collection (sukhumvit Soi 38), is already experiencing strong demand, leasing 20 units primarily to Japanese tenants. Rents range from 115,000 to
