M.K. Real Estate has revealed that the rental property market in 2019 remained stable, and forecasts that 2020 will be another challenging year for the rental market due to various impacting factors, including COVID-19 and the overall global economic situation. Therefore, retaining existing customers and attracting new ones is crucial, and this is something that all operators must focus on in such circumstances.

Mr. Sakdina Manlerd, Senior Executive Vice President of Project Management at M.K. Real Estate Development Plc. discussed the overall apartment rental business, stating that the apartment or condominium rental market is an attractive option for long-term investors, especially if the project is located in a good area with complete amenities. More importantly, retaining existing tenants for a long time can reduce marketing costs and stabilize income, which is a significant challenge for those in the rental market. For example, PARK COURT SUKHUMVIT 77 received a positive response last year (2019) with an occupancy rate exceeding 80%, generating rental income of 42 million baht, compared to only 24 million baht the previous year (2018). The average rent is over 120,000 baht per month, with most tenants being business professionals working in Thailand. To retain this customer base, we have worked hard to meet their needs, understand them, and provide tailored services to meet their expectations. This service aspect is a crucial complement to the quality product. It must be acknowledged that PARK COURT SUKHUMVIT 77 is a standout project located in the "Sukhumvit-On Nut" area, which offers multiple access routes. The project itself is equipped with numerous amenities, and the supply in the luxury segment in this location is limited, making it a project of interest to consumers, primarily targeting high-level executives.

“When developing rental projects, we must focus heavily on understanding the needs of potential tenants. For PARK COURT SUKHUMVIT 77, we aim to create residences for high-end clients, who have strong purchasing power and seek premium living conditions. Once we identify this target, we focus on developing large units, starting at nearly 300 square meters, providing tranquility along with amenities, including parking at 208%. Additionally, there is a large communal garden that gives a sense of being surrounded by nature. The project is also conveniently located amidst complete amenities, catering to the lifestyle of our clients,” Mr. Sakdina stated.

According to research and development data from Plus Property Co., Ltd., the overall real estate market indicates that “even though the sales property market is slowing down due to economic conditions and regulations on housing loans (Loan to Value Ratio: LTV), the rental market continues to grow and provide good returns. Particularly, rental condominiums still offer worthwhile returns, especially in prime areas of Bangkok, including Ploenchit-Chidlom, Silom-Sathorn, and Sukhumvit, which are increasingly attractive due to development and expanding amenities. Demand is diversifying, allowing for successful rentals among working professionals and businesspeople, with average rental yields of 5-6% per year.”

Given the positive factors of the Sukhumvit area, which offers convenient transportation and multiple access routes, including Sukhumvit Road connecting to Thonglor, Pattanakarn, Rama 4, and Silom, as well as Srinakarin Road leading to Lat Krabang and Bangna-Trad, which connects to Suvarnabhumi Airport, and proximity to expressway entrances like Ram Inthra-Ajarn Rong and Chalerm Nakhon Expressway (Sukhumvit 62), along with the BTS station at On Nut, this area is a prime location sought after by investors. Not only is the land price lower than in Thonglor-Ekkamai, but it also shows continuous growth and expansion potential.

Additionally, the project is located in the T77 area, which is well-equipped with complete public utilities, such as the HUB77 lifestyle community mall, HUBBA-TO Co-working Space, the largest and most comprehensive creative workspace in Southeast Asia, and Bangkok International Preparatory and Secondary School. The surrounding area also offers numerous dining options.

PARK COURT SUKHUMVIT 77 is located in Sukhumvit 77, with a project value of over 3 billion baht, consisting of super-luxury apartments and condominiums. The project comprises only 5 buildings with 70 units on a large area of 7.8 rai, divided into 2 buildings for sale (Building A and Building D) with 28 units and 3 buildings for rent (Building B, Building C, and Building E) with 42 units, along with parking at 208%. It features complete amenities that create a resort-like atmosphere amidst over 2 rai of natural green space, combined with a close-to-nature environment in the city center. Additionally, there is a Multi-Purpose Room to accommodate various activities for residents, such as fitness, swimming pool, and playground, and the project allows pet ownership. Each unit emphasizes privacy with a spacious area of approximately 300 square meters, featuring 3 bedrooms, 1 multipurpose room, and a separate maid's room. Units are available in Fully Fitted with built-in furniture only and Fully Furnished with all necessary appliances. Rental prices start at 120,000 baht per unit per month, and sales prices start at 45 million baht per unit. “For 2020, the company expects to maintain an occupancy rate of 80% across all rental units,” Mr. Sakdina concluded.