The prospects for Bangkok’s office market are bright, but with only 400,000 sqm of available space, and a new supply of only 300,000 sqm predicted over the next three years, Knight Frank (Thailand) expects vacancies to fall sharply and rents to rise to record levels in the near future.
In its Q2 2014 Office market Research Report, published late last week, the real estate agency noted that as of the end of June, there was approximately 4,555,271 sqm of office space in Bangkok.
Occupancy rates increased to 91 percent from 90.6 percent during the previous quarter. he first half of 2014 saw strong demand with more than 80,000 sqm taken up. Overall office rental rates in Bangkok increased by 2.1 percent year-on-year, reaching THB630 per sqm in Q2 2014.
Office space in the central business district (CBD) made up around 48 percent of the supply. The majority of Bangkok offices were classified as Grade ‘B’, with about 68 percent of the total, whereas Grade ‘A’ office space was only 32 percent, according to the real estate firm.
There will be approximately 307,723 sqm added to the office supply from Q3 2014 to 2017, of which the new office supply in the CBD will be only 72,048 sqm.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
