By Andrew Batt:
Bangkok’s Class A office sector is predicted to remain buoyant in 2013 as a result of increasing occupancy and rental rates.
Surachet Kongcheep, Senior Manager of Colliers International Thailand’s Research Department, said: “The rental rate of Class A office buildings in Bangkok is still very low when compared to other countries, and because of this the office market in 2012 showed the highest growth figure during the past many years, especially demand which significantly increased.”
With several overseas companies setting up offices in Bangkok, Colliers predicts the sector will remain positive with limited existing and future supply for the next few years, driving an increase in both its occupancy and rental rates during the year.
The global economy has seen recent headwinds from the smoldering euro zone debt crisis, slowing growth in China’s economy and the forecasted American fiscal cliff. Yet, the overall office real estate is expected to be moderately positive, according to the Global Office 2013 Outlook report published by Colliers.
While many large office occupiers have taken a wait-and-see attitude toward the global economy, others are leasing up much-needed space to accommodate expanding operations. Quality office buildings in major cities in the world are seeing consistent demand from both occupiers and investors.
In terms of office occupancy costs, two Asian markets ranked among the top five most expensive in the world as of mid-2012. Hong Kong’s Class A office rent continued to top the world, with Tokyo taking the third spot.
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@allproperty.com.sg
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