Bangkok--22 May--CB Richard Ellis As a result of increasing Japanese production activity in Thailand, the number of Japanese expatriates continues to increase, fueling demand for Bangkok apartments and condominiums for rent, according to Mr. Theerathorn Prapunpong, Director of Residential Leasing Services at CB Richard Ellis, the leading international property consultants in Thailand. Japanese work-permit holders already comprise the largest group of work-permit holders in Thailand. According to the Ministry of Labour, as of February 2008, 24,740 out of 122,262 BOI and temporary work-permit holders were Japanese, roughly equal to 20% of the total. Total Work Permits Approved by Nationality (as of February 2008) Source: Alien Occupational Control Division of Department of Employment, Ministry of Labour The most popular residential locations with Japanese expatriates are Sukhumvit Soi 21-55. This area offers convenient access to a wide range of facilities, including the BTS, expressways, supermarkets, hospitals, shopping and entertainment complexes, as well as proximity to the Japanese school. Supermarkets that cater more to the Japanese crowd include Fuji Super 1, Fuji Super 2, the Emporium and Villa Market at J-Avenue. When it comes to unit type, the tenant’s family size is the deciding factor. For single tenants, a one- or two-bedroom unit in the region of 80 square meters is sufficient, and budgets can range from THB 45,000 per month all the way to THB 75,000 per month if the person is an executive with a higher compensation level. Japanese couples, even without children, prefer larger units, and these are generally of the two-bedroom type, with floor space of around 100 square meters. Budgets are in the THB 60,000-80,000 per month range, depending on the unit, personal preferences, and spending limits. Designs are quite important as Japanese tenants usually look for a higher level of decoration and fittings, including wooden floors, high ceilings, built-in closets and storage units, along with a spacious kitchen containing a large sink and ample countertop space. Units must include washing machines, four-burner electric stove, large fridge, and a powerful water heater. However, a dishwasher is not necessary. Required building facilities include a garden, children’s playground, and exercise options such as a swimming pool or fitness center. A wading pool, usually designed for children, is a plus. Also valued are Japanese language capabilities or services and shuttle transportation to nearby BTS stations, supermarkets, and hospitals. “Also key is the presence of children-friendly facilities, such as ramps for strollers, and other child safety precautions,” explains Mr. Noriyuki Matsuura, Manager of Japanese Residential Leasing Services at CB Richard Ellis, a specialized team that focuses on providing residential solutions for Bangkok’s burgeoning Japanese community. High-speed wireless internet services should exceed 2Mbps as this allows for viewing internet TV. As for cable TV, the most popular package is the one that comes with the NHK option. Most Japanese children tend to go to the Japanese school near Rama IX Road. Other international schools are not popular with Japanese children, especially until high school (age of 15 or so). This is partly because it is essential for Japanese children who want to pursue university in Japan to go to the Japanese school. In line with Japanese investment in Thailand, the number of students enrolled at the Japanese school has been steadily rising as well. The school has grown from 1,759 students in 2001 to 2,401 students in 2007. As far as contract terms, most residential leasing in this sector is done on a one- or two-year contract. In two-year contracts, there is usually a “diplomatic” clause that permits early termination in the event that the tenant is transferred overseas for any reason. A 60-day notice period is usually required in this case. In general, Japanese tenants are more likely to move at the end of their lease period if they are not satisfied with the accommodations and service at the property. Apartments in downtown Bangkok enjoyed an occupancy rate of 90% in Q1 2008. No new supply was completed during the quarter. Future supply expected for completion in 2008 includes The Grand Sethiwan 2 housing 172 units on Sukhumvit Soi 24 and the newly renovated Nithi Court comprising 14 units on Sathon Road. CB Richard Ellis expects that demand, especially from Japanese expatriates, will grow in line with or outpace supply, keeping occupancy rates well within the 87-93% range seen since 2000. About CB Richard Ellis CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and an S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2007 revenue). With over 29,000 employees, the Company serves real estate owners, investors and occupiers through more than 300 offices worldwide (excluding affiliate offices). CB Richard Ellis is the only commercial real estate services company named one of the 50 “best in class” companies by BusinessWeek, and was also named one of the 100 fastest growing companies by Fortune. CB Richard Ellis established an office in Bangkok in 1988, followed by Phuket office in 2004, and Samui and Pattaya offices in 2007. CB Richard Ellis (Thailand) Co., Ltd. has grown to be a leading real estate services provider, offering strategic advice and execution for sales and leasing for all types of property, property and facilities management, valuation and advisory, and research and consulting. For more information, visit the company's website at . For further information: Mr. Theerathorn Prapunpong Director — Residential Leasing Services 662 654 1111 Ms. Ngamjai Jearrajarat Corporate Communications Manager 662 654 1111 Ext. 522