Expat Demand Keeps Sukhumvit as Bangkok’s Rental Hub, Driving Rents Up Despite Q2 Dip

In downtown Bangkok, the Sukhumvit corridor continued to shape the city’s rental housing landscape in the second quarter, with strong demand from expatriates — notably Japanese nationals — supporting high occupancy and pushing rents higher, even as the quarter showed a slight dip. The Sukhumvit axis remained the central hub for both serviced apartments and conventional apartments, anchoring the city’s rental market with a dominant share of supply and activity. As the market tracks new completions and shifting expatriate demographics, stakeholders are closely watching how Sukhumvit’s premium positioning translates into ongoing rent resilience and occupancy strength.

Market Snapshot: Sukhumvit’s Rental Dominance in Q2 2025

The Sukhumvit corridor asserted itself as the dominant force in downtown Bangkok’s rental sector through the second quarter of 2025, driven by sustained expatriate demand and a concentration of high-quality units. Chotika Tungsirisurp, who leads CBRE Thailand’s consulting and research, highlighted that Sukhumvit accounted for the majority of both serviced apartment and conventional apartment supply, representing 65% of total serviced apartment stock and a striking 86% of total apartment supply. This concentration underscores Sukhumvit’s unique position as the city’s premier rental node, attracting a steady stream of tenants from abroad, with Japanese nationals appearing as a key leasing demographic.

By the end of June 2025, the downtown Bangkok serviced apartment market stood at 17,729 units, reflecting a 3.5% increase from the previous quarter due to new completions in Sukhumvit. In contrast, the conventional apartment sector remained unchanged at 8,668 units, as there were no new projects completed during the period. These supply dynamics illustrate a bifurcated market where serviced apartments have continued to expand, while conventional apartments maintained a steady baseline, reinforcing the importance of Sukhumvit as the primary driver of both segments. CBRE’s leasing data indicated that two-bedroom and three-bedroom serviced apartments each captured significant transactional shares, representing 33% and 30% of total serviced-apartment transactions, respectively. For the traditional apartment market, two-bedroom units led the way, accounting for 38% of all apartment transactions.

Ms. Chotika emphasized that Sukhumvit housed the majority of preferred serviced apartments and all preferred apartment transactions, with the dominant rental activity largely attributed to Japanese tenants. This pattern solidified Sukhumvit’s status as Bangkok’s rental hub, where premium properties attract a steady inflow of expatriates seeking high-quality accommodations in a convenient, cosmopolitan setting. The quarter’s data points collectively convey a market that remains resilient, with occupancies and rents supported by international demand and the concentration of premium supply in Sukhumvit.

Serviced Apartments: Occupancy, Rents, and Demand Dynamics

The downtown serviced apartment market maintained strong operating metrics in Q2 2025, even as occupancy experienced a marginal quarterly adjustment. The average occupancy rate settled at 84.8%, down by 0.7 percentage points quarter-on-quarter, but still up by 6.2 percentage points year-on-year. This pattern indicates a more mature, stabilized cycle for serviced apartments, with the quarter-over-quarter dip possibly reflecting seasonality or a temporary pause in new leasing momentum, while the year-over-year improvement points to sustained demand from long-stay expatriates and business travelers who prefer serviced formats.

From a supply perspective, Sukhumvit’s predominance persisted, reinforcing the corridor’s status as the epicenter for serviced accommodation. The overall mix of supply showed a continued tilt toward premium, branded products, with international-branded serviced residences representing 32.6% of the total supply. Thai brands, too, claimed a meaningful share, representing 34.7%, which points to a balanced competitive landscape where both foreign and domestic operators vie for premium tenancy. Among the top operators, The Ascott Limited led the international segment, while Thai brands included notable names such as Chatrium Hotels and Residences, Onyx Hospitality Group, and Centre Point.

The market’s pipeline added four serviced-apartment projects, totaling 921 units, with one under construction and three in planning stages. This modest but meaningful addition suggests a measured expansion trajectory for the serviced-apartment segment, aligned with the ongoing demand from expatriates and corporate clients who seek high-quality, service-centered living arrangements in central Bangkok. In terms of pricing, Grade A serviced-apartment rents continued a gentle ascent, averaging 1,261 baht per square meter per month. Sukhumvit asserted the premium positioning within the Grade A segment, with rents at 1,271 baht per square meter per month, followed closely by Central Lumpini and Siam at 1,194 baht, and Silom and Sathon at 1,099 baht.

A notable development in the serviced-apartment market is the La Clef Bangkok by The Crest Collection on Sukhumvit Soi 38. The project opened two months prior and comprises 115 units. It has already leased 20 units, with the majority of tenants being Japanese. Unit sizes range from 38 to 95 square meters, and monthly rents span from 115,000 to 210,000 baht. The project is positioned in the super-luxury segment, and Kanit Sangmookda, the country general manager for Thailand and Laos at The Ascott Limited, noted that rents are roughly 20–30% higher than Ascott Thonglor, its other serviced-apartment offering located opposite. This dynamic underscores a market segmentation where new, ultra-premium projects command elevated pricing and attract expatriates seeking exclusive living experiences in prime locations.

Conventional serviced-apartment pricing, against broader rental trends, continued to reflect tight market dynamics. While the average Grade A serviced-apartment rent rose, the underlying pattern demonstrated that Sukhumvit remains the most expensive and in-demand corridor for premium rental units, reinforcing the notion of Sukhumvit as Bangkok’s prime serviced-apartment district. The price structure for the broader Grade A segment further cemented Sukhumvit’s premium status relative to neighboring districts, reinforcing the area’s appeal to high-income expatriates and senior executives who require convenience, security, and luxury amenities. The market’s occupancy trend, combined with ongoing supply growth in Sukhumvit, suggests a balance between premium pricing and robust demand for serviced accommodations in the quarter.

Subsection: Market Signposts and Tenant Profiles

Delving into tenant profiles, it is clear that expatriates, especially Japanese nationals, dominated demand for the most preferred serviced apartment offerings in Sukhumvit. This pattern aligns with the corridor’s reputation for high-quality properties, reputational brand equity, and proximity to international schools, business hubs, and dining and entertainment districts. The Japanese tenant base appears to be a key driver of both occupancy and rental growth, signaling a longer-term upside for premium operators who can tailor product features to this demographic. The data also imply that operators may continue prioritizing Sukhumvit properties for lease cycles and marketing strategies, given the area’s established track record for occupancy and reliability in rent collections.

From a broader market perspective, the serviced-apartment segment’s performance in Q2 2025 reflects a transitional phase in which occupancy remains high but faces incremental competition from new completions and upgraded properties within Sukhumvit. The balance of supply and demand suggests a durable premium rental market that rewards high-quality service levels, strategic branding, and location advantage. For investors and developers, Sukhumvit’s serviced-apartment market remains an attractive proposition, given the combination of secure occupancy, international-brand presence, and the ability to command premium rents. The challenge will be to manage ongoing development while maintaining high service standards and ensuring that new properties deliver value that resonates with expatriate tenants and corporate clients.

Traditional Apartments: Occupancy, Rents, and Area Prestige

The conventional apartment market in downtown Bangkok also reflected Sukhumvit’s dominance, with occupancy lifting to 94.4% in Q2 2025, up 1.3 percentage points from the prior quarter and up 3 percentage points year-on-year. The total supply remained steady at 8,668 units, with Sukhumvit hosting 86% of that stock. This concentration underscores Sukhumvit’s pivotal role in the conventional rental segment, mirroring the serviced-apartment market’s premium positioning and reinforcing the corridor’s overall market power.

Rents within the Grade A conventional apartment segment continued to show annual growth despite a marginal quarterly decline of 0.7%. The overall average asking rent stood at 584 baht per square meter per month, marking a 4.1% increase from a year earlier. Within the central sub-market, Central Lumpini and Siam registered the highest rents at 635 baht per square meter, followed by Sukhumvit at 594 baht, and Silom and Sathon at 505 baht. These figures illustrate a tiered price structure where Central Lumpini and Siam command the strongest price position, with Sukhumvit maintaining a high, though slightly lower, premium in the conventional segment.

The sustained premium in Sukhumvit, even within the conventional apartment category, is consistent with its broader status as Bangkok’s rental hub. The high occupancy and robust price growth reflect both the strength of international demand and the preference of expatriates and local professionals for premium living environments, integrated within a walkable, transit-accessible urban district. The data suggest that investors and developers may continue to target Sukhumvit for mixed-use, premium residential projects, leveraging the street-level amenities, global branding opportunities, and proximity to business centers to secure high-quality tenancy and long-term occupancy.

Subsection: Market Leaders and Brand Mix

Within the conventional apartment market, the brand mix again highlighted a strong presence of international and Thai operators. The international branded-residence segment represented 32.6% of total supply, illustrating the ongoing competition among global names to anchor premium rental lifestyles in central Bangkok. Thai brands followed closely with a 34.7% share, indicating a healthy domestic competitive landscape that complements international brands in meeting diverse tenant preferences. Leading operators in the tenant mix include The Ascott Limited in the international camp, while Thai operators such as Chatrium Hotels and Residences, Onyx Hospitality Group, and Centre Point play pivotal roles in shaping the local market’s performance and perception of value.

Overall, Sukhumvit’s dominance in both serviced and conventional apartments stems from a combination of supply concentration, brand strength, and tenant preferences that favor premium, well-located properties with high service standards. The market’s structural dynamics — including robust occupancy rates, resilient rent levels, and ongoing yet measured supply expansion — position Sukhumvit as a cornerstone of Bangkok’s urban housing market. For tenants, the appeal lies in the district’s integrated lifestyle offerings, while for landlords and operators, Sukhumvit’s profile translates into durable demand and the potential for continued rental growth, particularly in premium segments and among expatriate cohorts.

Pricing and Rents: An In-Depth Look at Grade A and Conventional Segments

The price architecture in downtown Bangkok’s rental market shows a clear bifurcation between serviced apartments and conventional units, with Sukhumvit consistently leading in pricing for both sectors. In the Grade A serviced-apartment category, rents are trending upward with a discernible premium attached to Sukhumvit. The average Grade A serviced-apartment rent reached 1,261 baht per square meter per month, with Sukhumvit properties commanding the highest rates at 1,271 baht per square meter per month. Central Lumpini and Siam followed at 1,194 baht, and Silom and Sathon trailed at 1,099 baht. This ranking highlights Sukhumvit’s role as the most expensive corridor for serviced accommodations, reinforcing its premium appeal among expatriates and executives who prioritize location, amenities, and brand prestige.

In the conventional apartment segment, the pricing narrative remained robust but displayed a different hierarchical pattern. The overall average asking rent across downtown conventional apartments stood at 584 baht per square meter per month, reflecting a 4.1% year-on-year increase. Central Lumpini and Siam posted the highest rents in this category at 635 baht per square meter, followed by Sukhumvit at 594 baht, and Silom and Sathon at 505 baht. This data underscores that while Sukhumvit remains highly priced, Central Lumpini and Siam drive the highest rents within the conventional segment, likely reflecting a combination of premium stock, land values, and centrality to business districts and amenities.

The distinct pricing trajectories for serviced and conventional apartments illustrate a nuanced market where tenants are ready to pay a premium for premier delivery formats and locations, particularly within Sukhumvit. The divergence in price leadership—Sukhumvit for serviced and Central Lumpini/Siam for conventional—signals a market segmentation strategy among operators, who tailor offerings to different tenant segments and price points while leveraging Sukhumvit’s overall premium reputation. For investors and developers, these dynamics emphasize the importance of a well-calibrated product mix that balances serviced and conventional units, ensuring that each segment can capture premium rent potential while mitigating occupancy risks in slower periods.

Subsection: Notable Project: La Clef Bangkok and Market Positioning

A standout development in the premium serviced-apartment segment is La Clef Bangkok by The Crest Collection, located on Sukhumvit Soi 38. This project, which opened two months prior to the June 2025 snapshot, comprises 115 units and has already leased 20 units, with the primary tenant base characterized by Japanese occupants. The unit sizes span 38 to 95 square meters, with monthly rentals ranging from 115,000 to 210,000 baht. The project’s positioning in the super-luxury segment is underscored by Kanit Sangmookda, country general manager for Thailand and Laos at The Ascott Limited, who explained that La Clef Bangkok’s rents are roughly 20–30% higher than those at Ascott Thonglor, Ascott’s other serviced-apartment offering located opposite. This pricing differential reflects the project’s high-end positioning, proximity to the Thonglor corridor’s amenities, and the prestige associated with the Crest Collection branding.

La Clef Bangkok’s early leasing traction illustrates the premium demand dynamics within Sukhumvit’s serviced-apartment market, particularly for properties that combine top-tier design, exclusive services, and strategic location. The Japanese tenancy orientation aligning with Sukhumvit’s most preferred serviced apartments reinforces the corridor’s role as a preferred destination for expatriates seeking high-quality living experiences near central business districts and international dining, retail, and cultural amenities. The project’s performance also highlights the price sensitivity of premium segments, where small shifts in supply quality and location can produce pronounced differentials in occupancy and rental performance relative to nearby competing properties.

Expatriate Population and Nationality Mix: Implications for the Rental Market

As of June 2025, Thailand’s expatriate population registered a slight decline, standing at 192,896 individuals. Bangkok was home to 97,232 expatriates, representing 52% of the national expatriate total. Chinese nationals remained the largest expatriate group nationwide, accounting for 24% of all expatriates, which translates to 50,197 individuals. This nationality distribution provides important context for rental demand, as expatriate preferences, corporate relocation patterns, and cross-border mobility influence the demand for premium housing in central Bangkok, particularly Sukhumvit.

The data suggest a continued concentration of expatriate households in Bangkok, with a substantial share of the total expatriate population based in the city. The 52% Bangkok share underscores the capital’s role as a primary hub for international workers and families, reinforcing the premium housing market’s resilience. The Chinese expatriate share, at 24%, also indicates a significant market segment with potentially strong demand for upscale apartments and serviced residences that offer convenience, security, and access to international schools, medical facilities, and business districts. The Japanese leasing pattern in Sukhumvit aligns with this broader expatriate demographic, suggesting that the district’s premium properties remain highly attractive to Japanese tenants and, to a broader extent, to other East Asian expatriates seeking premium urban living spaces in Bangkok.

For property developers, investors, and operators, these expatriate demographics imply a sustained demand pipeline — particularly in Sukhumvit — driven by corporate relocations, expatriate families, and the preference for high-quality, service-oriented housing options in a cosmopolitan city center. Operators may tailor their product offerings to these tenant groups, prioritizing security, luxury finishes, modern amenities, and convenient access to transport hubs and international facilities. The broader implication is that Sukhumvit can continue to command premium rents and maintain high occupancy, provided supply remains aligned with the preferences of expatriate tenants and the availability of branded, premium living experiences.

Notable Projects and Operator Landscape: The Branded and Domestic Mix

The market’s branding dynamic is characterized by a pronounced mix of international-branded residences and Thai brands, reflecting Bangkok’s cosmopolitan rental ecosystem. International-branded residences represented 32.6% of the total supply, while Thai brands captured 34.7%, illustrating a balanced competition between global operators and domestic brands. The top operators included The Ascott Limited as a leading international brand, with Thai operators such as Chatrium Hotels and Residences, Onyx Hospitality Group, and Centre Point among the market’s most active players. This distribution indicates a healthy, diversified landscape where tenants can access a range of service styles, price points, and brand experiences, from global luxury to locally anchored premium living options.

The La Clef Bangkok project exemplifies the premium, ultra-luxury trajectory that some operators are pursuing in Sukhumvit. The Crest Collection’s development combines high-end design, exclusive services, and strategic positioning to attract expatriate tenants with elevated expectations for space, comfort, and lifestyle experiences. The ongoing mix of brands—international, Thai, and boutique collections—signals a market that values both scale and niche prestige. For investors and developers, this implies opportunities to captivate different tenant segments by offering a spectrum of branded residential experiences, from internationally branded, large-scale properties to boutique, Crest Collection-style developments that emphasize exclusivity and tailored experiences.

Pipeline and Growth Outlook: New Projects and Market Implications

The ongoing pipeline for downtown Bangkok’s serviced apartments includes four projects totaling 921 units, with one under construction and three in planning. This development trajectory suggests a measured but deliberate expansion in product supply, concentrated in the Sukhumvit corridor where demand remains robust, particularly among expatriate and corporate tenants. The timing of new completions will influence occupancy dynamics in the medium term, potentially easing pricing pressure on a segment that has benefited from sustained premium demand but could face increased competition if supply accelerates beyond demand growth.

From a strategic perspective, developers are likely to continue prioritizing Sukhumvit for premium serviced-apartment projects due to the corridor’s established tenant base, strong brand resonance, and proximity to business districts, embassies, international schools, and cultural amenities. Operators will need to balance the allure of new, ultra-luxury offerings with the practicalities of occupancy and yield management, ensuring that marketing, service differentiation, and unit configurations align with the preferences of expatriates, multinational corporate clients, and high-net-worth tenants. The market’s pricing dynamics will be closely tied to how effectively new supply can be integrated into existing occupancy workflows while maintaining the premium perception that drives premium rents.

Supply Trends and Area-Wide Impact: Sukhumvit vs. Other Districts

Sukhumvit’s share of both serviced and conventional apartment stock remains dominant, reinforcing its status as Bangkok’s rental epicenter. The combined effect of supply concentration, high occupancy, and premium rental levels in Sukhumvit drives a market dynamic in which the corridor sets the price and occupancy benchmarks for the wider downtown area. Central Lumpini and Siam, while not matching Sukhumvit’s supply concentration, play a critical role in anchoring the top-tier rent levels for conventional apartments, signaling a continued bifurcation within the downtown market: Sukhumvit as the premium, high-demand hub; Central Lumpini and Siam as the high-rent, business-midtown anchor; and Silom and Sathon as other core nodes with distinct demand profiles.

This segmentation supports a multi-city, multi-district rental strategy for developers and investors seeking to diversify risk while capitalizing on the high-value segments. Sukhumvit’s leadership in both serviced and conventional segments suggests a stable, long-term demand base driven by expatriates and premium tenants who prize location, brand, and service. The market’s trajectory will likely hinge on ongoing collaboration between developers, operators, and occupancy strategies that emphasize brand differentiation, service quality, and pricing discipline in response to evolving expatriate demographics and global mobility trends.

Conclusion

Bangkok’s Sukhumvit corridor emerged in Q2 2025 as the core engine of the downtown rental market, with expatriate demand — especially among Japanese tenants — underpinning occupancy and rent resilience even amid minor quarterly shifts. The corridor’s dominance is evident across both serviced apartments and conventional apartments, where Sukhumvit’s share of supply remains substantial and pricing remains premium, reflecting its status as Bangkok’s rental hub. The serviced-apartment market posted an average occupancy of 84.8% for the quarter, down slightly from the prior quarter but up meaningfully year-on-year, while the conventional apartment market achieved a 94.4% occupancy rate, reinforcing Sukhumvit’s central role in Bangkok’s rental ecosystem.

Rents in the Grade A serviced-apartment segment climbed, with Sukhumvit leading at 1,271 baht per square meter per month, underscoring the corridor’s premium position and the willingness of expatriates to pay for luxury, location, and service. The conventional apartment segment mirrored this premium trajectory, with Central Lumpini and Siam posting the highest rents overall. The market’s brand mix remains balanced between international brands and Thai operators, illustrating a healthy, competitive landscape that offers tenants a spectrum of premium living experiences. The La Clef Bangkok project represents the ongoing push into ultra-luxury offerings in Sukhumvit, signaling how premium developers are differentiating through location, design, and exclusive services.

Looking ahead, the market’s evolution will depend on the pace and nature of new completions, the resilience of expatriate demand, and the ability of operators to deliver differentiated products that meet the preferences of international tenants. The ongoing blend of serviced and conventional offerings in Sukhumvit will shape the area’s long-term rental outlook, with continued emphasis on premium amenities, strategic branding, and strong operational performance. As Bangkok’s expatriate population stabilizes and international mobility continues, Sukhumvit’s role as the city’s premier rental district is likely to persist, reinforcing its appeal to developers, investors, and tenants seeking high-quality urban living in the heart of Bangkok.

Conclusion