Occupancy and rental rates in Bangkok’s office sector remained largely unchanged last year but are set to rise in 2014, according to recent research from Colliers International.
In its Bangkok Office Market H2 2013 report, the agency noted that only one new office building was completed in 2013
Average occupancy rate and rents in all locations are similar to in the previous quarter, although the occupancy rate and rents in the central business district (CBD) have significantly increased over the past two years.
Many multinational and local companies are continuing to seek office space in Bangkok, especially along existing mass transit lines in the CBD area, resulting in a slight rise in average occupancy rates.
Colliers reported that more than 80 percent of Bangkok’s total office space was completed prior to 2013, and it predicted potential for a significant amount of renovation in the near future if rents continue to rise.
It noted the area along Ratchadapisek Road, from the junction of Rama 9, is becoming a new business zone in the Thai capital, and most new office buildings expected to be completed in 2015 are located in this area.
“Rentals and occupancy rate will continue to increase in 2014, due to limited supply against rising demand from the past few years,” the report noted.
The prospect of the AEC in 2015 and the opening up of Myanmar are also factors in raising demand for office buildings in Bangkok, Colliers reported, because Thailand is seen as an increasingly important regional centre for companies with operations in the sub-region, that is, Myanmar, Laos and Cambodia.
Political instability is still the major factor affecting the confidence of Thai and foreign investors, businessmen and tourists over the past few years, and also going forward into 2014, it concluded.
Read the full report from Colliers International here:
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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